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Davidson Company has 600,000 shares of treasury stock repurchased in 2018 at $25 per share. No treasury shares were yet resold to the market. The stock's par value is $2 per share and its market price on May 2nd, 2019 is $15 per share.  Which of the following is correct when Davidson finally resells 100,000 of its treasury shares on May 2nd of 2019?     Group of answer choices Stockholders' Equity will decrease by $1,500,000 million. Stockholders' Equity will decrease by $2,500,000 million. Additional Paid-in Capital-Treasury Stock will decrease by $1,000,000 million. Retained earnings will decrease by $1,000,000 million.

Davidson Company has 600,000 shares of treasury stock repurchased in 2018 at $25 per share. No treasury shares were yet resold to the market. The stock's par value is $2 per share and its market price on May 2nd, 2019 is $15 per share.  Which of the following is correct when Davidson finally resells 100,000 of its treasury shares on May 2nd of 2019?     Group of answer choices Stockholders' Equity will decrease by $1,500,000 million. Stockholders' Equity will decrease by $2,500,000 million. Additional Paid-in Capital-Treasury Stock will decrease by $1,000,000 million. Retained earnings will decrease by $1,000,000 million.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Davidson Company has 600,000 shares of treasury stock repurchased in 2018 at $25 per share. No treasury shares were yet resold to the market. The stock's par value is $2 per share and its market price on May 2nd, 2019 is $15 per share.  Which of the following is correct when Davidson finally resells 100,000 of its treasury shares on May 2nd of 2019?    

Group of answer choices
Stockholders' Equity will decrease by $1,500,000 million.
Stockholders' Equity will decrease by $2,500,000 million.
Additional Paid-in Capital-Treasury Stock will decrease by $1,000,000 million.
Retained earnings will decrease by $1,000,000 million.
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