Question

When treasury shares are reissued for an amount greater than cost, the amount over the cost increases

Answer 1

When treasury shares are reissued by a business firm for an amount that's greater than cost, the amount divided by the cost increases additional paid-in capital.

What is treasury shares?

Treasury shares is also known as treasury stock and it can be defined as a type of stock that's typically bought back by an issuing company from stockholders, so as to reduce the quantity of its outstanding stock on the open market.

This ultimately implies that, the amount divided by the cost increases additional paid-in capital when treasury shares are reissued by a business firm for an amount that's greater than cost.

Read more on treasury shares here: brainly.com/question/13400086

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