Indicate Whether Each of the Following Statements About Stockholders' Equity

Short Answer

Indicate whether each of the following statements about stockholders' equity is true or false.
_____ a) The balance in the treasury stock account increases total stockholders' equity.
_____ b) A company may acquire treasury stock in an effort to increase the market price of its stock.
_____ c) The declaration and distribution of a stock dividend reduces retained earnings.
_____ d) A 2-for-1 stock split probably will double the monetary value of each investor's holdings on the date the split takes effect.
_____ e) If treasury stock that had been acquired by a company for $50 per share is resold for $60 per share, total assets and stockholders' equity will increase.