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creativ13 [48]
1 year ago
5

When treasury stock is purchased for an amount greater than its par, what is the effect on total shareholders' equity?

Business
1 answer:
fomenos1 year ago
8 0

When treasury stock is purchased for an amount greater than its par then the total shareholders' equity decreases.

Given that the treasury stock is purchased for an amount greater than its par.

We are required to find the effect of the purchase of treasury stock for an amount greater than its par on the total shareholders' equity.

Treasury stock is basically known as treasury shares or reacquired stock, and refers to previously outstanding stock that is bought back from stockholders by the issuing company. The result of issuing treasury stock is that the total number of outstanding shares on the open market decreases. Shares of a company are a part of total shareholders' equity and because shares are issued for security, it will decrease the total shareholders;equity.

Hence when treasury stock is purchased for an amount greater than its par then the total shareholders' equity decreases.

Learn more about treasury stock at brainly.com/question/17439058

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Stella [2.4K]

Answer:

$40,000

Explanation:

The accounting procedure involved in the above is that one picks the lower between the actual interest incurred and the interest computed on the weighted average amount of accumulated expenditures for PPE.

The actual interest incurred on specific construction debt and other borrowings

= $50,000 + $20,000

= $70,000

Since the interest computed on the weighted average amount of accumulated expenditure for the building is $40,000 , the lower between the actual interest incurred and interest on weighted average amount of accumulated expenditure is $40,000, hence will be the capitalized amount.

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lawyer [7]

Answer: Lead generation  

     

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In the given case, the Texas department is trying to attract tourists to visit their state. It is the first time they are trying to do so by inviting the readers of magazines.

Hence from the above we can conclude that the primary purpose of their ad was lead generation.

4 0
3 years ago
Which of the following is an example of a Specialty store? a. Big Lots c. Macy’s b. Wal-Mart d. PetSmart
erik [133]

Answer:

<u>PetSmart</u> is an example of a speciality store.

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7 0
2 years ago
terin, the chief human resources officer for a major financial services company, has met with each of her employees to set their
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Given that Terin's employees have set their objectives in the company, the next thing that Terin expects from these employees would be to develop action plans.

Option D is the correct answer to this question. The action plans are sets of strategies that the employees have laid out that would help them to achieve their goals and objectives.

In order to do this, they have to make up lists of the things that they want to achieve in the firm and also list the strategies that they would employee to achieve them.

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Natasha2012 [34]

Answer:

c) wasteful rent-seeking

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