Discuss the following:
- The difference between the cost, par and constructive retirement method.
- For the cost and par value methods, prepare journal entry examples of each using the following information:
- 1000 shares of $5 par stock were sold for $7.
- 500 shares were repurchased at a price of $6.
- The 500 shares were later sold for $3500.
- For the constructive retirement method prepare the following journal entry:
- The shares were retired.
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