Generally Accepted Accounting Principles
in the United States

Accounting Principles Board (APB) Opinion No. 6
        a.  Status of Accounting Research Bulletins
        b.  Issued in October 1966

 Treasury Stock
           --> Capital stock acquired (and held)
                 by the entity that issued such stock.

 Treasury stock is
           --> reported separately
                 as a deduction from the total of
                       (capital stock, additional paid-in capital, and retained earnings.)

 Gains on Sales of Treasury stock
           --> credited to additional paid-in capital.

 Losses on Sales of Treasury stock
           --> charged to additional paid-in capital
                       (up to previous gains on sales of same class of stock)
           --> remaining losses are
                 charged to retained earnings.
                
 Retirement of Treasury Stock
           An excess of purchase price over par (or stated) value
           --> charged to
                      additional paid-in capital (limited to pro rata portion)
                      and retained earnings.

           Alternatively,
           --> may be charged (entirely)
                 to retained earnings.

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