Posy Corp. acquired treasury shares at an amount greater than their par value, but less than their original issue price. Compared to the cost method of accounting for treasury stock, does the par value method report a greater amount for additional paid-in capital and a greater amount for retained earnings?

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Additional paid-in capital

Retained earnings

a.

Yes

Yes

b.

Yes

No

c.

No

No

d.

No

Yes