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4 March, 15:24

Kaplan Manufacturing Corporation purchased 2,500 shares of its own previously issued $10 par common stock for $57,500. As a result of this event, a. Kaplan's Common Stock account decreased $25,000. b. Kaplan's total stockholders' equity decreased $57,500. c. Kaplan's Paid-in Capital in Excess of Par Value account decreased $32,500. d. All of these answer choices are correct.

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  1. 4 March, 15:53
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    b. Kaplan's total stockholders' equity decreased $57,500

    Explanation:

    The purchase of treasury stock is as follows:

    Treasury Stock debit 57,500 (-Equity)

    cash credit 57,500 (-Assets)

    The company's equity decreased as well as the Assets.

    The common stock and paid-in Capital in Excess of Par Value will not be modified.

    This account will be decreased if the stocks are retired not at purchase
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