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Treasury stock was acquired for cash at a price in excess of its par value. the treasury stock was subsequently reissued for cash at a price in excess of its acquisition price. Assuming that the cost method of accounting for treasury stock transaction is used, what is time effect of the subsequent reissuance of the treasury stock on each of the following?

additional paid-in-capital | retained earning | total stock.equity

a. decrease decrease no effect

b. increase increase increase

c. increase no effect increase

d. no effect no effect no effect

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9413485

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