What is APIC from treasury stock used for under the cost method?
I keep seeing this account in answer choices but I am unclear on what it actually represents.
APIC from treasury stock accumulates credits from treasury shares reissued above cost. It can later absorb shortfalls when treasury shares are reissued below cost. If the shortfall exceeds that APIC balance, the remaining debit goes to retained earnings. The income statement is not used.
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