When cash is paid to retire stock, what is the effect?

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 7GI: How does the accounting for a liquidating dividend differ from that for a normal cash dividend?
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When cash is paid to retire stock, what is the effect?

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