Which Statement Is Correct About the "Two Transaction Method" for Treasury

Which statement is correct about the "two transaction method" for treasury shares?

A) This method decreases the contributed surplus when the repurchased shares are later re-sold.
B) This method has the same effect on contributed surplus to that of the two transaction method.
C) This method treats the reacquisition and subsequent sale as once cycle for accounting.
D) This method increases contributed surplus at the time of re-purchase.

Correct Answer:

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