A Corporation Purchases 30,000 Shares of Its Own $20 Par

Multiple Choice

A corporation purchases 30,000 shares of its own $20 par common stock for $35 per share, recording it at cost. What will be the effect on total stockholders' equity?

A) Increase by $1,050,000
B) Decrease by $600,000
C) Decrease by $1,050,000
D) Increase by $600,000