Intermediate Accounting 14th Edition

Published by Wiley
ISBN 10: 0470587237
ISBN 13: 978-0-47058-723-2

Chapter 2 - Conceptual Framework for Financial Reporting - Exercises - Page 73: E2-5k

Answer

Distribution to owners

Work Step by Step

Purchasing one's own stock is also known as stock buyback, where the issuing company pays shareholders for their shares at the current market value, therefore re-absorbing the ownership that was distributed to the shareholders.
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