15 ) At its date of incorporation , Wilson , Inc . issued 100,000 shares of its $ 10 par common stock at $ 11 per share . During the current year , Wilson acquired 20,000 shares of its common stock at a price of $ 16 per share and accounted for them by the cost method . Subsequently , these shares were reissued at a price of $ 12 per share . There have been no other issuances or acquisitions of its own common stock . What effect does the reissuance of the stock have on the following accounts ?
Retained Earnings | Additional Paid-in Capital A . Decrease | No effect B . Decrease | Decrease C . No effect | No effect D . No effect | Decrease
16 ) An unrealized holding gain on a company ‟ s available-for-sale securities should be reflected in the current financial statements as
A . a note or parenthetical disclosure only .
B . an extraordinary item shown as a direct increase to retained earnings .
C . other comprehensive income and included in the equity section of the balance sheet .
D . a current gain resulting from holding securities .
17 ) Which of the following is correct about the effective-interest method of amortization ?
A . Amortization of a premium decreases from period to period .
B . The effective interest method applied to investments in debt securities is different from that applied to bonds payable .