Answer:
-$2,000,000
Explanation:
Given the following :
Number of shares reacquired = 2 million
Price per share = $50
For the first time ;°
Number of shares sold = 1 million
Sales price per share = $51
Increase in Retained earnings : 1,000,000 × $(51 - 50) = 1,000,000 × $1 = $1, 000,000
Loss made from reacquizition:
Of the 2 million reacquired.
1,000,000 was sold at $47
Loss per share = ($50 - $47) = $3
Reduction in retained earning = (1,000,000 * $3) = - $3,000,000
Net total = $(1,000,000) - $3,000,000) = -$2,000,000
