A is corrent. When using the par value method of recording acquisitions of treasury stock, the Treasury stock account is debited for the par value of the stock. In addition, any excess over par from the original issuance must be removed from additional paid-in capital. Any further reductions must reduce the retained earnings account. All of the debits reduce stockholders’ equity.
B is incorrect. When using the par value method of recording acquisitions of treasury stock, the Treasury stock account is debited for the par value of the stock. In addition, any excess over par from the original issuance must be removed from additional paid-in capital. Any further reductions must reduce the retained earnings account. All of the debits reduce stockholders’ equity.
B is incorrect. When using the par value method of recording acquisitions of treasury stock, the Treasury stock account is debited for the par value of the stock. In addition, any excess over par from the original issuance must be removed from additional paid-in capital. Any further reductions must reduce the retained earnings account. All of the debits reduce stockholders’ equity.
B is incorrect. When using the par value method of recording acquisitions of treasury stock, the Treasury stock account is debited for the par value of the stock. In addition, any excess over par from the original issuance must be removed from additional paid-in capital. Any further reductions must reduce the retained earnings account. All of the debits reduce stockholders’ equity.
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