Final answer:
The resale of treasury stock for $3,500, initially purchased for $3,000, leads to a net increase in stockholders' equity of $500. The increase reflects the capital gain from these transactions and does not affect the company's income.
Step-by-step explanation:
When treasury stock is purchased for $3,000 and then sold for $3,500, the overall effect on stockholders' equity will be an increase, but not by the full amount of the sale. The purchase of treasury stock reduces stockholders' equity because the company is buying back its own shares. Upon resale of that treasury stock, the company receives cash of $3,500, which indeed increases stockholders' equity. However, since the stock was originally purchased for $3,000, the net increase to stockholders' equity is the difference between these two transactions, which is $500. Thus, stockholders' equity will be increased by $500, not $3,500, and since the sale of treasury stock is not an operating activity, it does not affect income.