Stock dividends distributable should be classified on the

a) income statement as an expense.

b) statement of financial position as an asset.

c) statement of financial position as a liability.

d) statement of financial position as an item of shareholders' equity.

When shares are reacquired at a cost less than the average per share value, the difference is credited to

a) the appropriate share capital account.

b) Gain on Reacquisition of Shares.

c) Retained Earnings.

d) Contributed Surplus.

Assuming a corporation has no contributed surplus booked, when shares are reacquired at a cost greater than their original issue price and cancelled, what account(s) should be debited?

a) the share account for the total cost

b) the share account for the original issue price and contributed surplus for the additional amount

c) the share account for the average per share amount and retained earnings for the additional amount

d) the share account for the average per share amount and a loss account for the additional amount