Multiple Choice
Calypso Inc.issues 100,000 shares at $10 / share in January.Later that year the company is able to repurchase 9,000 of these shares at $11 per share.The balance in the contributed surplus account is $0 prior to the share repurchase.The effect of this is
A) a decrease to the share capital account of $99,000.
B) an increase to the contributed surplus account of $9,000.
C) a increase to total shareholders' equity of $99,000.
D) a decrease in retained earnings by $9,000.
Correct Answer:
Verified
Correct Answer:
Verified
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