When a company retires its own common shares, the company must a. decrease the common share account balances by the original issue price. b. record a gain or loss depending on the difference between original selling price and repurchase cost. c. get the approval of the government to do so. d. issue a different class of shares to the former shareholders.
When a company retires its own common shares, the company must a. decrease the common share account balances by the original issue price. b. record a gain or loss depending on the difference between original selling price and repurchase cost. c. get the approval of the government to do so. d. issue a different class of shares to the former shareholders.
Chapter11: The Corporate Income Tax
Section: Chapter Questions
Problem 13MCQ
Related questions
Question
When a company retires its own common shares, the company must
a. decrease the common share account balances by the original issue price.
b. record a gain or loss depending on the difference between original selling price and repurchase cost.
c. get the approval of the government to do so.
d. issue a different class of shares to the former shareholders.
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