When treasury stock is purchased for cash at more than its par value, what is the effect on total shareholders equity under each of the following methods Cash method Par value method a Increase Increase b Decrease Decrease c No effect Decrease d No effect No effect

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When treasury stock is purchased for cash at more than its par value, what is the effect on total shareholders equity under each of the

When treasury stock is purchased for cash at more than its par value, what is the effect on total shareholders’ equity under each of the following methods?

	Cash method	Par value method
a.	Increase	Increase
b.	Decrease	Decrease
c.	No effect	Decrease
d.	No effect	No effect

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