Respuesta :
Stockholders' equity will drop by $350,000 based on the data provided.
What exactly is shareholder equity?
Shareholder equity is the amount of money invested in a company by its owners. This comprises both direct investments and indeed the accumulation of income earned by the company and reinvested since its beginning.
Are retained earnings comparable to stockholders' equity?
Shareholder equity is the number of assets remaining after deducting liabilities. Retained earnings are the earnings that the entity has kept from its inception. Retained earnings are reduced because when a company incurs losses or distributes dividends to its shareholders or owners.
According to the given information:
The purchase of Treas.
Stock decreases Stockholders equity by its cost,
in this case $35 * 10,000.
Stockholders' equity will decrease by $350,000.
To know more about Stockholders' equity visit:
https://brainly.com/question/13278063
#SPJ4
