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Assume a firm issues 100 shares of $5 par value preferred stock for $10 per share. The firm later repurchases half of these shares by
Assume a firm issues 100 shares of $5 par value preferred stock for $10 per share. The firm later repurchases half of these shares by paying $800. Later, the firm decides to re-sell the treasury stock for $20 per share. The effect of re-selling the treasury stock on the firm's accounts was to: decrease cash by $1,000 decrease treasury stock by $1,000 increase additional paid in capital by $200 O None of the above
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