Essay
Reacquisition of shares
For numerous reasons, a corporation may reacquire its own shares. When a corporation does this, the CBCA requires that the purchased shares be cancelled.
Instructions
Explain how a corporation would account for each of the following:
a) Purchase of shares at a price less than the carrying value of the shares
b) Purchase of shares at a price greater than the carrying value of the shares
c) The effect on net income
Correct Answer:
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a) If the acquisition cost is less than ...View Answer
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