When treasury shares are resold at a price above cost: a. Paid-in capital is reduced. b. Paid-in capital is increased. c. Retained earnings is always increased. d. A gain is reported in the income statement

When treasury shares are resold at a price above cost: a. Paid-in capital is reduced. b. Paid-in capital is increased. c. Retained earnings is always increased. d. A gain is reported in the income statement

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 8MC: The total amount of cash and other assets received by a corporation from the stockholders in...

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Question

When treasury shares are resold at a price above cost:

a. Paid-in capital is reduced.
b. Paid-in capital is increased.
c. Retained earnings is always increased.
d. A gain is reported in the income statement

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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