A corporation purchases 6,772 shares of its own $6 par common stock for $20 per share, recording it at cost. What will be the effect on total stockholders\' equity? Select the correct answer. Solution true answer is .

1. A corporation purchases 6,772 shares of its own $6 par common stock for $20 per share,
recording it at cost. What will be the effect on total stockholders' equity?
Select the correct answer.
increase, $94,808
decrease, $94,808
increase, $135,440
decrease, $135,440
Solution
true answer is
decrease, $94,808