If a company repurchase shares for a price less than the average price of the shares then the difference in price will be a
A)debit to retained earnings.
B)credit retained earnings.
C)debit to contributed surplus.
D)credit to contributed surplus.

Question

Quizplus · Accepted Answer

When a company repurchases shares for less than the average price, the difference is credited to contributed surplus, as it represents a gain on the repurchase of shares.

If a Company Repurchase Shares for a Price Less Than