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A company purchased 1,900 shares of treasury stock for $38,900 cash. The treasury stock was initially issued for $24,900 and had a $9,900 par value.
A company purchased 1,900 shares of treasury stock for $38,900 cash. The treasury stock was initially issued for $24,900 and had a $9,900 par value. Which of the following statements incorrectly describes the effect of the treasury stock purchase?
A. Total assets remain the same.
B . Stockholders' equity decreases.
C. Net income is unchanged.
D. Earnings per share increases.
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