(Answered) Question 1 purchase of treasury stocka has no effect on

Accounting

Question: 1. Purchase of treasury stock

(a) has no effect on assets;

(b) reduces total assets and total equity by equal amounts; or

2. Southern Co. purchases shares of Northern Corp. Should either company classify these shares as treasury stock?

3. How does treasury stock affect the authorized, issued, and outstanding shares?

4. When a company purchases treasury stock,

(a) retained earnings are restricted by the amount paid;

(b) Retained Earnings is credited; or

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