Sandusky Corporation purchased 3,000 shares of its own $1 par value common stock for$143,000. As a result of this transaction, the company’s stockholders’ equitya. decreased by $143,000.b. increased by $140,000.c. increased by $143,000.d. increased by $3,000.

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.