Question
The shareholders' equity section of the balance sheet of Thomson Corporation is shown in the provided table. (Click the icon to view the shareholders' equity
The shareholders' equity section of the balance sheet of Thomson Corporation is shown in the provided table. (Click the icon to view the shareholders' equity section.) i Shareholders' equity The preferred shares are currently selling for $89.50 per share and the common shares are currently selling for $12.50 per share. Assuming Thomson purchases 10,000 of its common shares at $12.50 per share, the balance of total shareholders' equity A. decreases by $75,000 B. decreases by $125,000 OC. increases by $125,000 OD. is the same as it was before the purchase of the company's own shares Contributed capital: Preferred shares, $6 cumulative, 25,000 shares authorized, 7,000 shares issued $700,000 Common shares, 1,000,000 shares authorized, 500,000 shares issued 2,500,000 Total contributed capital Retained earnings Total shareholders' equity 3,200,000 990,000 $4,190,000 Click to select your answer. Print Done
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