Asked by Kevin Nguyen on Jun 10, 2024
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The cost of treasury stock is deducted from total paid-in capital and retained earnings in determining total stockholders' equity.
Treasury Stock
Treasury stock consists of shares that were issued and later reacquired by the issuing corporation, not retired but held for future use.
Total Paid-In Capital
The total amount of capital that a company has received from shareholders in exchange for shares of stock.
Retained Earnings
The portion of net income that is retained by the corporation rather than distributed to its shareholders as dividends.
- Learn the methods of accounting and disclosure for transactions involving stocks, such as when issued at a premium and actions concerning treasury stocks.
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Learning Objectives
- Learn the methods of accounting and disclosure for transactions involving stocks, such as when issued at a premium and actions concerning treasury stocks.
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