How should a "gain" from the sale of treasury shares be reflected when using the cost method of recording treasury shares transactions?
A)As other income shown on the income statement.
B)As share premium from treasury share transactions.
C)As an increase in the amount shown for share capital.
D)As an increase in the retained earnings amount.

Question

Quizplus · Accepted Answer

Under the cost method, any "gain" from the sale of treasury shares is credited to share premium from treasury share transactions, not recognized as income.

How Should a "Gain" from the Sale of Treasury Shares