Chen, Inc. purchases 1,000 shares of its own previously issued $5 per common stock for $12,000. Assuming the shares are held in the treasury, what effect does this transaction have on (a) net income, (b) total assets, (c) total paid-in capital, and (d) total stockholders

The entry to record the purchase of the treasury stock is:

Debit Treasury Stock 12,000

Credit Cash 12,000

Step-by-step explanation:

(a) no effect on net income

(b) 12,000 decrease in total assets

(c) no effect on total paid-in capital. Treasury stock reduces retained earnings.

(d) 12,000 decrease in total stockholders' equity

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step-by-step explanation:

answer: the price of one pound cabbage = $ 0.8

the point (10,8) represents that the cost of 10 pounds cabbage is $ 8

step-by-step explanation:

since, here is a proportional relation between the number of pounds of cabbage (x) and the price in dollars (y).

therefore, we can write,

⇒ y = k x

where k is the constant of proportionality.

now, point (5,4) is in the line.

thus, it will satisfies the above equation of line.

⇒ 4 = 5 k

⇒ k = 0.8

thus, the equation of the line is,

y = 0.8 x

a) for x = 1,

y = 0.8

therefore, the cost of one pound of cabbage is 0.8 dollars.

b) in the below graph (10,8) represents that the cost of 10 pounds of cabbage is 8 dollars.