1 A. Which of the following is false related to the effect of donated (treasury)...
60.1K
Verified Solution
Link Copied!
Question
Accounting
1 A. Which of the following is false related to the effect of donated (treasury) stock from a shareholder to the company? a. The book value per common share is higher b. Donated stock is recorded at fair value c. The number of share outstanding declines d. Total shareholders' equity is reduced PLEASE FIX Answer sb D NOT A - The donation of stock by a shareholder to the company results in no change in total shareholders equity on the balance sheet. However, the number of common shares outstanding declines with a proportional increase in the book value per common share.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
