If a Company Resells Treasury Stock for Less Than It

question 63

Multiple Choice

If a company resells treasury stock for less than it was acquired,how is the difference between the original purchase price and the resell price recorded? First,you would:

• A)debit Retained Earnings.
• B)debit Paid-in capital-Treasury stock for the necessary amount,provided there is a sufficient credit in that account.
• C)credit Paid-in capital-Treasury stock.
• D)credit Retained Earnings.

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Definitions:

Democratic

Pertaining to a system of government or organization where power is shared equally among its members, often involving election of leaders and equality among citizens in decision-making processes.

Individualism

A social theory valuing the freedom and independence of the individual, often over the interests or norms of the group.

Collectivism

A cultural value that emphasizes the importance of groups and collective action over individual achievement or desires.

Narcissism

A personality trait characterized by inflated self-view and excessive need for admiration, often coupled with a lack of empathy for others.