When shares are reacquired at a cost less than the average per share value, the difference is credited to
A) the appropriate share capital account.
B) Gain on Reacquisition of Shares.
C) Retained Earnings.
D) Contributed Surplus.

Question

Quizplus · Accepted Answer

When shares are reacquired at a cost less than the average per share value, the difference is credited to Contributed Surplus, as it represents a gain on the transaction that is not realized through operations.

When Shares Are Reacquired at a Cost Less Than the Average