FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A corporation repurchased 8,000 of its own common shares, paying $8 per share. The shares were originally sold for an average of $5 per share.

A corporation repurchased 8,000 of its own common shares, paying $8 per share. The shares were originally sold for an average of $5 per share. Assuming this is the first share repurchase undertaken by the corporation, what will be the effect on retained earnings?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

The repurchase of shares at a price higher than the original selling price will result in a decrease ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

11th Canadian edition Volume 2

1119048540, 978-1119048541

More Books

Students also viewed these Accounting questions

Question

★★★★★
The BSG Company had a $ 33,000 balance in (Accumulated) Retained Earnings year end December 31, 2011. Dividends for Year 2012 totaled $ 10,000 and the December 31,2012 (Accumulated) Retained Earnings...

Answered: 1 week ago

Question

★★★★★
Suppose TV V is a linear transformation from V to V and {v,..., Um} is a basis of T(V). Let 3 = {w,..., wm} CV such that T(w;) = v; and W = span{3}. Show that V = WN(T), i.e., each v V can be written...

Answered: 1 week ago

Question

★★★★★
Major Project - Andrew Best - Best Business Solutions Incorporated (BBSI) Andrew Best was a very inquisitive child growing up. He was a great student in school and always asked a lot of questions....

Answered: 1 week ago

Question

★★★★★
Plainbank has $10 million in cash and equivalents, $30 million in loans, and $15 in core deposits. a. Calculate the financing gap. b. What is the financing requirement? c. How can the financing gap...

Answered: 1 week ago

Question

★★★★★
A 25-mm-thick copper plate is being machined by wire EDM. The wire moves at a speed of 1.5 m/min and the kerf width is 1.5 mm. Calculate the power required? (Assume that it takes 1550 J to melt 1...

Answered: 1 week ago

Question

★★★★★
What are the differences between the behavioristic and humanistic models of behavior? LO.1

Answered: 1 week ago

Question

★★★★★
3 How could you experiment with the personal and relational construct approach in your own coaching practice? What would be possible gains for you as a coach or for your clients?

Answered: 1 week ago

Question

★★★★★
The Virginia Department of Transportation is undertaking a construction project to widen a large section of interstate, highway near Washington, DC, which includes the construction of a number of new...

Answered: 1 week ago

Question

★★★★★
Draw the ERM (Crows Foot Model) for the following situation. Guidelines to follow when you are drawing the diagram: 1. Show the connectivity. 2. Identify the primary key and the foreign key. 3. Add...

Answered: 1 week ago

Question

★★★★★
The income of a small business for several years is given in the table below. Thousands of Dollars Year 2000 2001 2002 2003 2004 2005 2006 2007 8.4 52.6 62.6 58.8 50 46.8 55.2 98.2 a) Perform...

Answered: 1 week ago

Question

★★★★★
Capturing Good Memories During the Pandemic The Pandemic has been affecting the entire world for more than two years now. Despite the government's recently relaxed rules, most industries still have...

Answered: 1 week ago

Question

★★★★★
Describe Samsung Electronics' Internal Quality Management Program. What are the key components? Provide an assessment of Samsung Electronics' Internal Quality Management Program. Does the plan appear...

Answered: 1 week ago

Question

★★★★★
the Continuous Loop Model (paper posted in Modules), consider how or if this approach might be used to improve a value stream or project where you work or an organization you know well. How could you...

Answered: 1 week ago

Question

★★★★★
Market research is vital to sustainable export success in analysing international markets. It is a process that can help you avoid costly expansion mistakes and identify extraordinary business...

Answered: 1 week ago

Question

★★★★★
To learn more about the role of a supervisor, you will interview someone in a supervisory position; your selection cannot be yourself or someone in the class. Identify someone you think is an...

Answered: 1 week ago

Question

★★★★★
Consider a project to supply Detroit with 28,000 tons of machine screws annually for automobile production. You will need an initial $5,200,000 investment in threading equipment to get the project...

Answered: 1 week ago

Question

★★★★★
(a) Explain why the concentration of dissolved oxygen in freshwater is an important indicator of the quality of the water. (b) How is the solubility of oxygen in water affected by increasing...

Answered: 1 week ago

Question

★★★★★
Kyle Inc. incurred a net operating loss of $580,000 in 2017. Combined income for 2014, 2015, and 2016 was $460,000. The tax rate for all years is 30%. Prepare the journal entries to record the...

Answered: 1 week ago

Question

★★★★★
On December 31, 2016, Haley Inc. has taxable temporary differences of $2.2 million and a deferred tax liability of $616,000. These temporary differences are due to Haley having claimed CCA in excess...

Answered: 1 week ago

Question

★★★★★
Lu Corp. erected and placed into service an offshore oil platform on January 1, 2017 at a cost of $10 million. Lu is legally required to dismantle and remove the platform at the end of its nine-year...

Answered: 1 week ago

Question

★★★★★
Covercraft manufactures covers to protect automobile interiors and finishes. Its Block-It 200 Series fabric has a limited two-year warranty. Periodic testing is done to determine if the warranty...

Answered: 1 week ago

Question

★★★★★
Analysis by American Express found high fuel prices and airline losses resulted in increasing fares for business travelers. The average fare paid for business travel rose during the second quarter of...

Answered: 1 week ago

Question

★★★★★
USA Today reported the results of a survey conducted by HarrisInteractive to determine the percentage of adults who use a computer to access the Internet (from work, home, or other locations). The...

Answered: 1 week ago

Previous Question Next Question