A Corporation Purchases 40,000 Shares of Its Own $30 Par

Multiple Choice

A corporation purchases 40,000 shares of its own $30 par common stock for $45 per share, recording it at cost. What will be the effect on total stockholders' equity?

A) Increase by $1,800,000
B) Decrease by $1,200,000
C) Decrease by $1,800,000
D) Increase by $1,200,000