If treasury stock is purchased and retired at a cost in excess of its book value,book value per share (for the remaining shares)will decrease.

Question

Quizplus · Accepted Answer

When treasury stock is purchased and retired at a cost higher than its book value, it reduces the total equity more than the reduction in the number of shares, leading to a decrease in book value per share for the remaining shares.

If Treasury Stock Is Purchased and Retired at a Cost