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Alpha Corporation has the following Shareholders ½ Equity section of the Balance Sheet at 1/1/2004:
Preferred Stock, 10%, $100 Par Value, 10,000 shares authorized, 1,000 issued, and outstanding
$ 100,000Additional Paid In Capital ½ Preferred Stock
240,000Common Stock, $10 Par Value, 100,000 shares authorized, 50,000 shares issued and outstanding
500,000Additional Paid In Capital ½ Common Stock
800,000Total Paid In Capital
$1,640,000Retained Earnings
2,000,000Total Shareholders ½ Equity$3,640,000
28. can you let me know how you got the answer for this questionAssume Alpha reacquires share of their own Common Stock to hold in the Treasury. They pay $ 30.00 per share. With this purchase, the impact on Total Paid-in Capital and the total Shareholders Equity, respectively, will be:
a. increase/increase
b. decrease/decrease
c. increase/decrease
d. decrease/increase
e. none/decrease
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How you got the answer for this questionassume alpha
: 240,000Common Stock, $10 Par Value, 100,000 shares authorized, 50,000 shares issued and outstanding500,000Additional Paid In Capital ½ Common Stock
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