For numerous reasons, a corporation may reacquire shares of its own capital stock. When a company purchases treasury stock, it has two options as to how to account for the shares: the cost method and the par value method.

Required:Compare and contrast the cost method and the par value method for each of the following:

• Purchase of shares at a price less than par value.
• Purchase of shares at a price greater than par value.
• Subsequent resale of treasury shares at a price less than purchase price but more than par value