Question
BONS, Inc. repurchased some of its own stock. BONS paid $10 million cash to acquire 200,000 shares. The par value of BONS stock is $1.00
BONS, Inc. repurchased some of its own stock. BONS paid $10 million cash to acquire 200,000 shares. The par value of BONS stock is $1.00 per share. This transaction will: Question 18 options: Reduce BONS' stockholders' equity by reducing the common stock account by $200,000 and reducing the "capital in excess of par" account by $9,800,000. Reduce BONS' stockholders' equity by reducing the common stock account by $10 million. Increase BONS' stockholders' equity by increasing the common stock account by $200,000 and increasing the "capital in excess of par" account by $9,800,000. Increase BONS' stockholders' equity by increasing the magnitude of the balance in the treasury stock account by $10 million. Reduce BONS' stockholders' equity by increasing the magnitude of the balance in the treasury stock account by $10 million.
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