Question: a. What is the treasury stock method and when is it used? b. Briefly describe the application of the treasury stock method. c. What does

a. What is the treasury stock method and when is it used?

b. Briefly describe the application of the treasury stock method.

c. What does the treasury stock method assume about the exercise date? What is the exception to the rule with respect to the assumed exercise date? What alternative procedure is employed in this instance?

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a The treasury stock method is the time value of money alternative to the more common cash method of accounting It is used when the potential cash flows associated with an asset are expected to be gre... View full answer

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