Answered

Discover the answers to your questions at Westonci.ca, where experts share their knowledge and insights with you. Our Q&A platform provides quick and trustworthy answers to your questions from experienced professionals in different areas of expertise. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.

On December 1, 20X4, Line Corp. received a donation of 2,000 shares of its $5 par value common stock from a stockholder. On that date, the stock's market value was $35 per share. The stock was originally issued for $25 per share. By what amount would this donation cause total stockholders' equity to decrease

Sagot :

Answer:

$0

Explanation:

The shares that are donated is treated as the treasury shares. The treasury stock and the gain or the revneue account rise the stock market value. If there is an increase in the treasury stock so it reduced the stockholder equity but on the other hand the gain or revenue increase the owner equity

So overall there is no net effect

hence, the amount should be $0

Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.