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Artemon [7]
1 year ago
11

A sale of treasury stock may result in a decrease in paid-in capital. All decreases should be charged to Paid-In Capital from Sa

le of Treasury Stock.
Business
1 answer:
ivanzaharov [21]1 year ago
4 0

It is False that a sale of treasury stock may result in a decrease in paid-in capital. All decreases should be charged to Paid-In Capital from Sale of Treasury Stock.

<h3>Treasury stock</h3>

A sale of treasury stock results in an increase in the paid-in capital of the company like explained below:

  • If the sale of the treasury stock is made above the price of its repurchase, there is again that is credited in the paid-in capital creating an increase in the paid-in capital account
  • Vice versa, i.e. if the sale price is below the price of repurchase of stock, there is a decrease in the company's retained earnings as the loss leads to a reduction in the profit.

To learn more about Treasury stock visit the link

brainly.com/question/17136960

#SPJ4

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<h3 /><h3>What is purchasing power parity?</h3>

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