Assume That a Company Issued 10,000 Shares for $30/share and a Par

Question 52
Multiple Choice

Assume that a company issued 10,000 shares for $30/share and a par value of $5/share.1,000 shares were repurchased back at $22/share.Which statement about share repurchases and cancellation is correct? A)Contributed surplus from the share repurchase can be netted against the contributed surplus from share issuance. B)Contributed surplus from the share repurchase must be separated from the contributed surplus on share issuance. C)Contributed surplus arising from share repurchase must be debited in this transaction. D)Contributed surplus from the initial share issuance must now be credited in this transaction.