ACC 423 Education Begins/uophelp.com ACC 423 Education Begins/uophelp.com | Page 10

nce between the cost and sales price should be recorded as a deductio n from A. retained earnings. B. additional paidin capital to the extent that previous net “gains” from sales of the sam e class of stock are included therein; otherwise, from retained earning s. C. net income. D. additional paidin capital without regard as to whether or NOT there have been previo us net “gains” from sales of the same class of stock included therein. 8) УGains” on sales of treasury stock (using the cost method) should be credited to A. retained earnings. B. paid-in capital from treasury stock. C. other income. D. capital stock. 9) When treasury stock is purchased for more than the par value of the stock and the cost method is used to account for treasury stock, what account(s) should be debited? A. Treasury stock for the purchase price. B. Treasury stock for the par value and paidin capital in excess of par for the excess of the purchase price over the par value. C. Treasury stock for the par value and retained earnings for the exce ss of the purchase price over the par value. D. Paid-in capital in excess of par for the purchase price. 10) Antidilutive securities A. include stock options and warrants whose exercise price is less th an the average market price of common stock. B. should be included in the computation of diluted earnings per shar e but NOT basic earnings per share. C. should be ignored in all earnings per share calculations. D. are those whose inclusion in earnings per share computations wou ld cause basic earnings per share to exceed diluted earnings per share. 11) What effect will the acquisition of treasury stock have on stockhol ders‟ equity and earnings per share, respectively?