c. Profit distributions must be formally approved by the board of directors.
d. Dividends must be in full agreement with the capital stock contracts as to preferences and participation.
S36. In January 2012, Finley Corporation, a newly formed company, issued 10,000 shares of its $ 10 par common stock for $ 15 per share. On July 1, 2012, Finley Corporation reacquired 1,000 shares of its outstanding stock for $ 12 per share. The acquisition of these treasury shares
a. decreased total stockholders ' equity.
b. increased total stockholders ' equity.
c. did not change total stockholders ' equity.
d. decreased the number of issued shares.
P37.
Treasury shares are
a. shares held as an investment by the treasurer of the corporation.