Question
which of the following is a true statement regarding the use of the cost method for treasury stock transactions? a. share that are acquired are
which of the following is a true statement regarding the use of the cost method for treasury stock transactions? a. share that are acquired are resold at alower price could lower retained earnings (debit) if the additional paid in capital treasury stock account cannot fully absorb the loss b. shares that are acquired and resold at a higher price will increase the retained earnings (credit) account c. Net income will be affected when aquired shares are resold at ahigher or lower price d. the additional paid in capital treasury stock account will absorb all losses (debit) when shares are acquired and resold at a lower price (loss)
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