6. Treasury shares (TS) were acquired for cash at a price in excess of its par value. The treasury shares were subsequently reissued for cash at a price in excess of its acquisition price. What is the effect on retained earnings of the acquisition of treasury shares and of the reissuance of treasury shares? a. Acquisition of TS - NO EFFECT; Reissuance of TS - INCREASE b. Acquisition of TS - INCREASE; Reissuance of TS - INCREASE c. Acquisition of TS - NO EFFECT; Reissuance of TS - NO EFFECT d. Acquisition of TS - INCREASE; Reissuance of TS-DECREASE 1 point 7. A company issued rights to its existing shareholders to purchase, for P30 per share, unissued shares of P15 par value ordinary share capital. Additional paid-in capital will be credited when the a. Rights are issued - YES; Rights are exercised - NO; Rights lapse - NO Ob. Rights are issued - NO; Rights are exercised NO; Rights lapse - YES c. Rights are issued - NO; Rights are exercised- YES; Rights lapse - NO Od. Rights are issued - YES; Rights are exercised - YES; Rights lapse - YES 1 point