When O'Rourke Corporation Sells Treasury Stock for More Than the Original

question 5

Multiple Choice

When O'Rourke Corporation sells treasury stock for more than the original cost:

• A)stockholders' equity increases.
• B)paid-in capital increases.
• C)retained earnings may increase.
• D)retained earnings may decrease.

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Definitions:

Talent

Natural aptitude or skill.

Projection

A psychological defense mechanism where individuals attribute their own unacceptable thoughts and feelings to others.

Inadequacies

The state or quality of being insufficient or not meeting the required standards.

Blaming

Assigning responsibility for a fault or wrong to someone else.