Answered

At Westonci.ca, we connect you with the best answers from a community of experienced and knowledgeable individuals. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.

Dilution Solutions, Inc. repurchased 500 shares of its $2 par value common stock for $10,000. The effect of this transaction on the accounting equation, using the cost method, includes a ______. (Check all that apply.) Multiple select question. $10,000 decrease in Cash $9,000 decrease in Additional Paid-In Capital $1,000 increase in stockholders' equity $10,000 increase in Treasury Stock

Sagot :

Answer: $10,000 increase in Treasury Stock

Explanation:

Treasury stock, is also known refered to as the treasury shares and it occurs when stock is bought buy the issuing company back from the stockholders.

This results in the reduction in the total number of outstanding shares that can be found on the open market. In the above scenario, since Dilution Solutions, Inc. repurchased 500 shares of its $2 par value common stock for $10,000, this will bring about a $10,000 increase in the treasury stock.

Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Thank you for trusting Westonci.ca. Don't forget to revisit us for more accurate and insightful answers.