Answer:
Decrease, $350000.
Explanation:
Given: Corporation purchases 10000 shares for $35 per share.
Now, calculating cost of common stock.
Cost of common stock purchased = [tex]10000\times 35= \$ 350000[/tex]
∴ Cost of common stock purchased= $350000
∴ If there is increase in expense and dividend payout to common and preferred shareholder, it lead to decrease in stockholders´ equity.
