The Tornado Truck Body Company decides to repurchase 10,000 shares of its common stock on January 20.  The stock has $1 par value, and the market value per share of common stock on January 20 is $8.75. What account(s) and amount(s) would be debited in the required journal entry? Group of answer choices A)Treasury stock $87,500 b)Treasury stock $10,000 c)Treasury stock $10,000 and additional paid-in capital-treasury stock $77,500 d)Cash $87,500 E)None of the above

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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.