Refer to the above data. The reacquisition of the 1,000 shares on April 1, 2006, causes:
A. No change in total assets of Virginia Corporation.
B. No change in the number of shares of Virginia Corporation stock outstanding.
C. A reduction in total assets and in total stockholders' equity of Virginia Corporation.
D. Virginia Corporation to show a new asset, Treasury Stock, of $62,000.
Answer:C
Refer to the above data. The reacquisition of the 1,000 shares on April 1, 2006, causes:
A. No change in total assets of Virginia Corporation. B. No change in the number of shares of Virginia Corporation stock outstanding. C. A reduction in total assets and in total stockholders' equity of Virginia Corporation. D. Virginia Corporation to show a new asset, Treasury Stock, of $62,000.