Gabriel Company views share buybacks as treasury stock. In its first treasury stock transaction, Gabriel purchased treasury stock for more than the price at which the stock was originally issued. What is the effect of the purchase of the treasury stock on each of the following?
Retained earnings Paid in Capital
a. No effect no effect
b. No effect Increase
c. Increase decrease
d. decrease decrease
A) a
B) b
C) c
D) d
Answer: A
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