Under the par value method of accounting for treasury stock, the treasury stock is reported on the balance sheet as a deduction from
A) the sum of contributed capital, other comprehensive income, and retained earnings.
B) retained earnings.
C) capital stock.
D) contributed capital.

Question

Quizplus · Accepted Answer

Treasury stock is reported as a deduction from capital stock under the par value method, reflecting the reduction in the amount of outstanding stock.

Under the Par Value Method of Accounting for Treasury Stock