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What will be the effect on total stockholders equity

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Reference no: EM131601821

Question - A corporation purchases 27000 shares of its own $20 par common stock for $35 per share, recording it at cost. What will be the effect on total stockholders' equity?

Decrease by $945000.

Increase by $540000.

Increase by $945000.

Decrease by $540000.

Reference no: EM131601821

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