Westside Shipping issued "preemptive rights" to its existing shareholders without consideration whereby each shareholder is offered the opportunity to buy a percentage of any new shares issued equal to the percentage of shares he/she owns at the time. When Westside issues the rights, which of the following accounts will be increased?
Common stock no, additional PIC no
Treasury stock transactions may cause:
A) An increase in the balance of retained earnings.
B) A decrease in the balance of retained earnings.
C) An increase or a decrease in the amount of net income.
D) An increase or a decrease in the par value per share
Answer: B
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