Kellogg, Incorporated purchased $200$ shares of its own $$20$ par value stock for $$30$ cash per share. Which of the following answers reflects how this purchase of treasury stock would affect Kellogg's financial statements?

Balance Sheet Income Statement Statement of Cash Flows

Assets $=$ Liabilities $+$ Stockholders$$ Equity

Cash $+$ Investment $=$ Accounts Payable $+$ Other Equity Accounts $$ Treasury Stock Revenues $$ Expenses $=$ Net Income

A$.(4,000)+$ NA $=$ NA $+$ NA $4,000$ NA $$ NA $=$ NA $(4,000)$ FA

B$.(6,000)+6,000=$ NA $+$ NA $$ NA NA $$ NA $=$ NA $6,000$ IA

C$.(6,000)+$ NA $=$ NA $+$ NA $6,000$ NA $$ NA $=$ NA $(6,000)$ FA

D$.(4,000)+4,000=$ NA $+$ NA $$ NA NA $$ NA $=$ NA $4,000$ IA

Multiple Choice

Choice A

Choice B

Choice C

Choice D