A company purchased treasury stock for $20,800. The treasury stock was initially issued for $16,500 and had a $6,800 par value. Which of the following statements correctly describes the effects of the treasury stock purchase?A. Stockholders' equity increases $16,500.B. Net income decreases by $9,700.C. Stockholders' equity decreases $20,800.D. Net income increases by $9,700.

The statement that correctly describes the effects of the treasury stock purchase by the company is:

C. Stockholders' equity decreases $20,800.

Explanation:

A treasury stock purchase decreases stockholders' equity because a treasury stock represents a contra account to the stockholders' equity.  When the value of the treasury stock is increased through a purchase, the treasury stock account increases while the common stockholders' equity decreases by the amount paid for the purchase.

so they can see what that city is producing and to also see if they can some how get that product. like gold in africa.

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20