Accounting Principles - Standalone book
Accounting Principles - Standalone book
12th Edition
ISBN: 9781118875056
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
Question
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Chapter 13, Problem 14Q

(a)

To determine

Repurchase of stock: Re-acquisition of own stock by a corporation from the market is termed as repurchase of stock. Companies generally do this to increase the ownership of its old and existing shareholders as repurchasing of stock increase the fraction of the company for remaining shareholders.

To Explain: Effect of repurchase of stock when held in treasury on net income.

(b)

To determine

To Explain: Effect of repurchase of stock when held in treasury on total assets.

(c)

To determine

To Explain: Effect of repurchase of stock when held in treasury on total paid-in capital.

(d)

To determine

To Explain: Effect of repurchase of stock when held in treasury on total stockholder’s equity.

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