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When common stock is purchased by the issuing corporation at a price below the original issue price and the stock is retired, the transaction: Multiple Choice Increases retained earnings. Increases net income for the year. Increases revenue for the year. Increases paid-in capital—share repurchase.

Respuesta :

Answer: Increases paid-in capital—share repurchase.

Explanation:

When common stock is being bought by the issuing corporation at a price that is below the original issue price and the stock is being retired, the transaction, we should note that there will be a rise in the paid-in capital-share repurchase.

We should note that paid-in capital here means the amount of cash that has been give by the shareholders which they exchange for stock.

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