What is the effect on share premium and retained earnings, respectively, of the purchase of treasury shares at an amount above par value?

A. No effect, no effect

B. Increase, no effect

C. Decrease, decrease

D. Decrease, no effect

The par value of a share capital is

A. The present value of the share

B. The liquidation value of the share

C. The legal nominal value

D. The amount received by the corporation when the share capital was originally issued

Which of the following result in an increase in share premium?

A. Purchase of treasury shares at above par value

B. Purchase of treasury shares below par

C. Sale of the treasury shares at an amount higher than the acquisition cost