Agee Storage issued 38 million shares of its $1 par common stock at $13 per share several years ago. Last year, for the first time, Agee reacquired 1 million shares at $11 per share. Assuming that Agee retires shares it reacquires (restores their status to that of authorized but unissued shares), by what amount will Agee’s total paid-in capital decline if it now reacquires 1 million shares at $16 per share?
Agee Storage issued 38 million shares of its $1 par common stock at $13 per share several years ago. Last year, for the first time, Agee reacquired 1 million shares at $11 per share. Assuming that Agee retires shares it reacquires (restores their status to that of authorized but unissued shares), by what amount will Agee’s total paid-in capital decline if it now reacquires 1 million shares at $16 per share?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Agee Storage issued 38 million shares of its $1 par common stock at $13 per share several years ago. Last year, for the first time, Agee reacquired 1 million shares at $11 per share.
Assuming that Agee retires shares it reacquires (restores their status to that of authorized but unissued shares), by what amount will Agee’s total paid-in capital decline if it now reacquires 1 million shares at $16 per share?
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