Which Statement About "Share Buyback" Is Correct

question 25

Multiple Choice

Which statement about "share buyback" is correct?

• A)If the repurchase price is below the issue price, an accounting "gain" results.
• B)If the repurchase price is below the issue price, the difference goes to "common shares."
• C)If the repurchase price is below the issue price, the difference goes to "contributed surplus."
• D)If the repurchase price is below the issue price, an accounting "loss" results.

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Definitions:

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