Question
Corporation reported the following stockholders' equity at December 31 (adapted and in millions): Common stock. . . . . . . . . . .
Corporation reported the following stockholders' equity at December 31 (adapted and in millions):
Common stock. . . . . . . . . . . . . . . . . . . . | $255 |
Additional paid-in capital. . . . . . . . . . . . | 246 |
Retained earnings. . . . . . . . . . . . . . . . . | 2,195 |
Treasury stock. . . . . . . . . . . . . . . . . . . . | (691) |
Total stockholders' equity. . . . . . . . . . . | $2,005 |
During the next year, Genius Marketing purchased treasury stock at a cost of $24 million and resold treasury stock for $15 million (this treasury stock had cost Genius Marketing $3 million).
Requirements 1. Record the purchase and resale of Genius Marketing'sGenius Marketing's treasury stock.
2. Overall, how much did stockholders' equity increase or decrease as a result of the two treasury-stock transactions?
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