Answer:
c. Decrease by $1015000.
Explanation:
The trasury stock are recorded at cost.
Which means we record at their market value
29,000 shares x 35 market price = 1,015,000 total cost of the stock
TS 1,015,000 debit
cash 1,015,000 credit
The TS are a contra-equity account. It decreasesthe equity.
The equity will decrease by 1,015,000
There are less share outstnding, the equity of the company is lower.
It will increase once it sale his stocks.
