1 A. Which of the following is false related to the effect of donated (treasury) stock from a shareholder to the company? a. The book value per common share is higher b. Donated stock is recorded at fair value c. The number of share outstanding declines d. Total shareholders' equity is reduced PLEASE FIX Answer sb D NOT A - The donation of stock by a shareholder to the company results in no change in total shareholders equity on the balance sheet. However, the number of common shares outstanding declines with a proportional increase in the book value per common share.