Question
Shore and Gardiner each own 10,000 shares of S&G Corporation $12 par value stock, which they purchased for $38 per share directly from the corporation.
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Shore and Gardiner each own 10,000 shares of S&G Corporation $12 par value stock, which they purchased for $38 per share directly from the corporation. If Shore sells his stock to Gardiner for $475,000:
Assets of S&G Corporation increase.
No account of S&G Corporation is affected.
Stockholders' equity of S&G Corporation decreases.
Stockholders' equity of S&G Corporation increases.
Shore and Gardiner each own 10,000 shares of S&G Corporation $12 par value stock, which they purchased for $38 per share directly from the corporation. If Shore sells his stock to Gardiner for $475,000:
| Assets of S&G Corporation increase. | ||
| No account of S&G Corporation is affected. | ||
| Stockholders' equity of S&G Corporation decreases. | ||
| Stockholders' equity of S&G Corporation increases. |
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
13th Edition
978-0073379616, 73379611, 978-0697789938
