D is corrent because the fair value method is not an acceptable method of accounting for treasury stock. The three acceptable methods are the par value method, the cost method, and the constructive retirement method.
A is incorrect because the constructive retirement method is an acceptable method of accounting for treasury stock.
B is incorrect because the cost method is an acceptable method of accounting for treasury stock.
C is incorrect because the par value method is an acceptable method of accounting for treasury stock.
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