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:

Adaptive Responses

Behaviors or changes that allow an organism or system to adjust to new conditions or to preserve functionality in the face of external challenges.

Integrity

The quality of being honest and having strong moral principles, or the state of being whole and undivided.

Interdependence

The mutual reliance between two or more entities, where each affects and is affected by the other.

Transaction Process Model

A theoretical framework describing interactions between individuals and their environment as dynamic and reciprocal processes.