When treasury stock is purchased,accountants record treasury stock at:
A)the stock's par value.
B)the stock's original selling price.
C)the stock's cost which is current market value.
D)the difference between the original selling price and the par value.

Question

Quizplus · Accepted Answer

When treasury stock is purchased, accountants record it at its cost, which is the current market value. This means that the value recorded will reflect the price paid to buy back the shares, rather than the par value or original selling price.

When Treasury Stock Is Purchased,accountants Record Treasury Stock At