Chapter 11, Problem 11.6ME

Determining the Effects of Stock Issuance and Treasury Stock Transactions

Trans Union Corporation issued 5,000 shares for $50 per share in the current year, and it issued 10,000 shares for $37 per share in the following year. The year after that, the company reacquired 20,000 shares of its own stock for $45 per share. Determine the impact (increase, decrease, or no change) of each of these transactions on the following classifications:

1. 1. Total assets.
2. 2. Total liabilities.
3. 3. Total stockholders’ equity.
4. 4. Net income.