Stock purchased at $3,000 is sold for $3,500. As a result what would be the two transaactions combined.
a) income will increase by $500
b)stockholders equity will increase by $3,500
c)stockholders equity will increase by $500
d) stockholders equity will not change
My choice was c. the equity will increase by $500
Yes..the stock purchased is treasury stock. When treasury ...
The solution explains the effect on the stockholders equity if treasury stock is sold above cost