Renaldo Cross Company views share buybacks as treasury stock. Renaldo repurchased shares and then later sold the shares at more than their acquisition price. What is the effect of the sale of the treasury stock on each of the following?
A) Option A
B) Option B
C) Option C
D) Option D

Question

Renaldo Cross Company views share buybacks as treasury stock. Renaldo repurchased shares and then later sold the shares at more than their acquisition price. What is the effect of the sale of the treasury stock on each of the following? 
A) Option A 
B) Option B 
C) Option C 
D) Option D

Quizplus · Accepted Answer

The difference between the cash received and the treasury stock balance is credited to paid-in capital-share repurchase.

Renaldo Cross Company Views Share Buybacks as Treasury Stock