(a) What is the basic difference between the cost method and the par value method of accounting for treasury stock (b) How will total stockholders equity differ, if at all, under the two methods ...

a The cost method of accounting for treasury stock records the treasury stock at cost pending f ...

(a) What is the basic difference between the cost method and the par value method of accounting...

Question:

(a) What is the basic difference between the cost method and the method of accounting for treasury stock?
(b) How will total stockholders’ equity differ, if at all, under the two methods?

Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...