A corporation purchases 10,000 shares of its own $10 par common stock for $35 per share, recording it at cost. What will be the effect on total stockholders' equity?

A) increase by $100,000
B) increase by $350,000
C) decrease by $100,000
D) decrease by $350,000

Treasury Stock

Shares of a company's own stock that have been reacquired and held in the company's treasury for future use.

Stockholders' Equity

Represents the ownership interest of shareholders in a corporation, calculated as total assets minus total liabilities.

Par Common Stock

The stated face value of a share of common stock, which has no direct impact on its market value.