Indicate Whether Each of the Following Statements About Treasury Stock

Short Answer

Indicate whether each of the following statements about treasury stock is true or false.
_____ a) One reason for a corporation to buy its own stock is to boost its net income when treasury stock is reissued for a higher price.
_____ b) Corporations may buy back their own stock (treasury stock) to avoid hostile takeovers.
_____ c) Purchasing treasury stock reduces the number of issued shares.
_____ d) The treasury stock account is classified as a negative equity account.
_____ e) If treasury stock is reissued for an amount lower than its purchase price, retained earnings is decreased.