A corporation purchases 21000 shares of its own $ 20 par common stock for $ 25 per

Fantastic news! We've Found the answer you've been seeking!

Question:

A corporation purchases 21000 shares of its own $20 par common stock for $25 per share, recording it at cost. What will be the effect on total stockholders’ equity?

Decrease by $105000.

Decrease by $420000.

Decrease by $525000.

Increase by $525000.

Related Book For answer-question

Fundamentals of Investments

ISBN: 978-0132926171

3rd edition

Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey

See More Books

Posted Date: Feb 13, 2022 04:24 PM

See More Questions

What would be the effect on cost and performance if tape storage were to achieve the same a real density as disk storage?
A corporation reacquires 10,000 shares of its own $25 par common stock for $420,000, recording it at cost. (a) What effect does this transaction have on revenue or expense of the period? (b) What...
What would be the effect on the firm's operating break-even point of the following individual changes? a. An increase in selling price b. An increase in the minimum wage paid to the firm's employees...
Axel Corporation acquires 100% of the stock of Wheal Company on December 31, Year 4. The following information pertains to Wheal Company on the date of acquisition: Book Value Fair Value Cash $...
A test of filtering software examined a sample of n = 100 messages. If the filtering software reduces the level of spam to 15%, this test only has a 33% chance of correctly rejecting H0: p 0.20....
Describe the possible losses to our society and the economy when people are unemployed.
Describe the various forms of sterilization.
Koch Chicken Corporation processes and packages chicken for grocery stores. It purchases chickens from farmers and processes them into two different products: chicken drumsticks and chicken steak....
We recently added the EPIX Movie Channels as part of a new tier of programming for our digital video subscribers. The EPIX channels are sold as an add-on package for $9.75 per month, but we would...
The following salaried employees of Mountain Stone Brewery in Fort Collins, Colorado, are paid semimonthly. Some employees have union dues or garnishments deducted from their pay. Required: Calculate...
How many grams of 90% pure NaSO4 can be produced from 250 gm of 95% pure NaCl ?
What is an operation? Give example with respect to different object oriented programming paradigms.
Graph the first-degree inequalities in two unknowns in Problems 13-48. $3 x+y \leq-2$
Consider the Honore and Kyriazidou (2000b) fixed effects logit model given in (11.19). (a) Show that for $T=3, \operatorname{Pr}\left[A / x_{i}^{\prime}, \mu_{i}, A \cup B ight]$ and...
Graph the first-degree inequalities in two unknowns in Problems 13-48. $5 x \geq 3 y$
Consider the Chamberlain (1985) fixed effects conditional logit model with a lagged dependent variable given in (11.16). Show that for \(T=3, \operatorname{Pr}\left[A / y_{i l}+y_{i 2}=1, \mu_{i}...
A supervisor's span of control refers to? The ability to control workers who are no sufficiently motivated The supervisor's ability to handle difficult employees The supervisor's ability to oversee...
The first national bank pays a 4% interest rate compound continuously. The effective annual rate paid by the bank is __________. a. 4.16% b. 4.20% c. 4.08% d. 4.12%
Pigeon Falls Fertilizer Company is listed on the NYSE. Gabby Hartnett, the specialist handling Pigeon Falls stock, is currently bidding 35| and asking 35f. What would be the likely outcomes of the...
Based on the default premium model presented in the text, what is the fair value default premium for a bond with an expected yield-to-maturity of 8.5%, a 10% annual default probability, and an...
Explain the purpose of the maintenance margin requirement.
Under what circumstances might an organization use short-term debt financing?
What is an aging schedule? How is it used to monitor a firms accounts receivable?
What is the equation for the corporate cost of capital (CCC)?

A corporation purchases 21000 shares of its own $ 20 par common stock for $ 25 per

Question:

Expert Answer:

Repurchase of the treasury stock will decrease by 525000 Explanation T... View the full answer

Fundamentals of Investments

Students also viewed these accounting questions