When treasury stock is purchased for cash at more than its par value, what is the effect on total stockholders’ equity under each of the following methods?
|
Cost method |
Par value method |
|
|
a. |
Increase |
Increase |
|
b. |
Decrease |
Decrease |
|
c. |
No effect |
Decrease |
|
d. |
No effect |
No effect |