The treasury stock in Discussion Question 6 is resold for $3,750,000. In Discussion Question 6, A corporation

Question:

The treasury stock in Discussion Question 6 is resold for $3,750,000.

In Discussion Question 6, A corporation reacquires 60,000 shares of its own $10 par common stock for $3,000,000, recording it at cost.

a. What is the effect on the corporation's revenue of the period?

b. What is the effect on stockholders' equity?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...