Amber Corporation purchases 40,000 shares of its own $20 par value common stock for $80 per share. What will be the effect on stockholders' equity? a. decrease $800,000
b. increase $3,200,000
c. increase $800,000
d. decrease $3,200,000

d. decrease $3,200,000

Explanation:

Outstanding shares = 40,000

Price per share = $80

Amount to be paid to purchase its own shares  = Number of outstanding shares x Price per share

= 40,000 x 80

= $3,200,000

When a company buys its own share , it is termed as Treasury stock, Having known that Treasury stock tends to decrease stockholders equity.

The stockholders equity of Amber Corporation  will be decreased by $3,200,000.

answer; ///i believe that the correct answer is (post conventional)

typically a loft will include modern kitchen and bathrooms, this increases the price tag. lofts also have a good amount of open space, this requires more heating and electricity. lofts are also in older buildings, this means that maintaining the location increases the bill. keep in mind this is without talking about the high state and property taxes.

i hope this you! : )