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Problem 1: What is the effect on share premium and retained earnings, respectively, of the purchase of treasury shares at an amount par value?
A. No effect, no effect B. Increase, no effect C. Decrease, decrease D. Decrease, no effect
Problem 2: Which of the following result in an increase in share premium?
A. Purchase of treasury shares at above par value B. Purchase of treasury shares below par C. Sale of the treasury shares at an amount higher than the acquisition cost D. Sale of treasury shares at an amount lower than the acquisition cost
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