![madisonreynolds2208](/avatars/23013.jpg)
madisonreynolds2208
04.01.2021 •
Business
A company purchased treasury stock for $20,800. The treasury stock was initially issued for $16,500 and had a $6,800 par value. Which of the following statements correctly describes the effects of the treasury stock purchase?A. Stockholders' equity increases $16,500.B. Net income decreases by $9,700.C. Stockholders' equity decreases $20,800.D. Net income increases by $9,700.
Solved
Show answers
More tips
- P Photography and Videography Understanding HDR: How It Works and Why You Need It...
- P Photography and Videography How to Choose the Perfect Photo Paper for Your Images?...
- C Computers and Internet How to Choose an Uninterruptible Power Supply (UPS) for Your Computer: Expert Tips...
- S Science and Technology How to choose a home theater system?...
- A Auto and Moto How to Choose a Car Wash? Tips and Recommendations...
- A Animals and plants How ants survive winter: exploring the secrets of their winter life...
- C Construction and repair How to Choose the Best Underfloor Heating?...
- S Sport When is the Champions League final?...
- S Sport When and Where Will the 2014 World Cup be Held?...
- C Computers and Internet The Twitter Phenomenon: What it is and How to Use it...
Answers on questions: Business
- B Business State income taxes of $4,400. Federal tax withholding of $21,000. Alimony payments to Johns former wife of $10,000 (divorced on 12/31/2014). Child support payments for Johns...
- B Business Hoi, im board soo herecr free points. report me if u want i.d.chope u have a good day :() ░░░░░░░░░░░░░░░░░░░▄▀▐░░░▌ ░░░░░░░░░░░░░░░░▄▀▀▒▐▒░░░▌ ░░░░░▄▀▀▄░░░▄▄▀▀▒▒▒▒▌▒▒░░▌ ░░░░▐▒░░░▀▄▀▒▒▒▒▒▒▒▒▒▒▒▒▒█...
- B Business 1. what was karl marx’s basic premise and belief?...
- H History How did pablo picasso communicate a political statement in guernica?...
- B Biology How does an increase in cell volume impact the diffusion of materials through the cytoplasm? a. the larger the cell, the longer time it takes for materials to travel. b. the...
- H History Which technologies have had the most powerful impact on cultural sharing?...
- B Biology Which of the following sentences contains correct usage of its/it s? a. my grandmother always said, its not if you win or lose, but how you play the game. b. its only a game....
- B Biology The brain is divided into the a. cerebrum b. cerebellum c. brain stem d. all of the above...
- B Biology You have an ecosystem with the following organisms: birds, fruit trees, tigers, and monkeys. which list would best describe the food chain?...
- H History Which statement is true according to the order of operations? choose exactly two answers that are correct. a. 8 – 4 ÷ 2 = 4 ÷ 2 = 2 b. 6 + 10 ÷ 2 = 6 + 5 = 11 c. 5 + (9 • 2)...
Ответ:
The statement that correctly describes the effects of the treasury stock purchase by the company is:
C. Stockholders' equity decreases $20,800.
Explanation:
A treasury stock purchase decreases stockholders' equity because a treasury stock represents a contra account to the stockholders' equity. When the value of the treasury stock is increased through a purchase, the treasury stock account increases while the common stockholders' equity decreases by the amount paid for the purchase.
Ответ: