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Which Statement About a "Treasury Shares" Is Correct

Question 42

Multiple Choice

Which statement about a "treasury shares" is correct?


A) The "single transaction method" treats the reacquisition as the end of the initial share issuance transaction.
B) The "two transaction method" decreases the contributed surplus when the repurchased shares are later resold.
C) The "two transaction method" treats the reacquisition and subsequent sale as one cycle for accounting.
D) The "single transaction method" treats the reacquisition and subsequent sale as two parts of the same transaction.

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