Plains corporation sells treasury stock at an amount well below cost. how could the disposal affect the retained earnings account?
The disposal will affect the retained earnings account "by decreasing the balance".
This is because selling treasury stock at a lower price would result in a loss that would reduce retained earnings.
What is treasury stock?
Treasury stock, also known as treasury stock or repurchased stock, refers to previously issued shares that the issuing company has repurchased from its shareholders. As a result, the total number of shares outstanding on the open market is reduced.
What are the advantages of owning stock?
Advantages of a company owning treasury stock include limiting external ownership and stockpiling shares that can be issued to the public in the future should it need to raise capital.
How can I increase my stock?
Treasury stock — also known as treasury stock — is stock that a company has bought back from public investors. When a company repurchases its shares, it puts the repurchased shares back under its control and reduces the supply of shares available in the market. This often drives prices up
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