By what amount does stockholders equity increase
A company issued 100,000 shares of common stock with a par value of $1 per share. The stock sold for $20 per share. By what amount does stockholders' equity increase?
a. $100,000
b. $1,900,000
c. $2,000,000
d. No change in stockholders' equity
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For the year, Beta had beginning total liabilities of $30,000 and ending total liabilities of $20,000. During the year, total assets increased $25,000. The beginning balance in stockholder's equity was $40,000.
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When treasury stock is purchased with cash, what is the impact on the balance sheet equation? No change: the reduction of the asset cash is offset with the addition of the asset treasury stock.
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