The repurchase of shares at a price lower than what the shares were initially issued at is called
A)share capital.
B)retained earnings.
C)other comprehensive income.
D)contributed surplus.

Question

Quizplus · Accepted Answer

The repurchase of shares at a price lower than what the shares were initially issued at creates a surplus, specifically called contributed surplus. This is because the repurchase reduces the amount of shareholders' equity that was initially raised from the sale of those shares, resulting in a surplus.

The Repurchase of Shares at a Price Lower Than What