On February 13, Solo Inc. reacquires 50,000 shares of its $1 par value common stock...
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Accounting
On February 13, Solo Inc. reacquires 50,000 shares of its $1 par value common stock at the current market price of $11. The stock was originally issued for $8. On August 22, Solo reissued the stock for $14. What is the effect of the February 13 transaction on Solos financial statements?
Assets decrease and equity decreases by $150,000
Assets decrease and equity decreases by $550,000
Assets decrease and equity increases by $150,000
None of these
Assets decrease and equity increases by $550,000
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