A corporation reacquires 60,000 shares of its own $10 par common stock for $3,000,000, recording it at cost.  a) what effect does this transaction have on revenue or expense of the period?  b) what effect does it have on stockholders' equity?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 7EB: Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the...
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A corporation reacquires 60,000 shares of its own $10 par common stock for $3,000,000, recording it at cost. 

a) what effect does this transaction have on revenue or expense of the period? 

b) what effect does it have on stockholders' equity

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