When a Corporation Reacquires Its Own Shares of Stock

question 88

Multiple Choice

When a corporation reacquires its own shares of stock,

• A) the Treasury Stock account is debited for the par value of the shares reacquired.
• B) the Treasury Stock account is debited for the price paid to reacquire the shares.
• C) the Treasury Stock account is debited for the original issue price of the shares.
• D) the Treasury Stock account is credited for the current market value of the shares.

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Definitions:

Individual Members

Persons who are part of a group or organization, each contributing uniquely to its function and purpose.

Mistaken Thinking

Erroneous or false reasoning and beliefs about situations or events.

Interact

To communicate or act together, often impacting each other in the process.

Final Stage

The last phase in a process or series of events, often culminating in a conclusion or resolution.