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Accounting Assignment | Custom Assignment Help

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October 4th, 2019

A company purchased treasury stock for $19,800. The treasury stock was initially issued for $14,000 and had a $5,800 par value. Which of the following statements correctly describes the effects of the treasury stock purchase?

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  • Net income increases by $8,200.
  • Net income decreases by $8,200.
  • Stockholders’ equity increases $14,000.
  • Stockholders’ equity decreases $19,800.

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