A re-issuance of treasury stock has the potential to yield a gain or loss on the income statement.

Question

Quizplus · Accepted Answer

There is no gain or loss on the re-issuance of treasury stock in the income statement. Instead, the difference between the proceeds received and the original repurchase price of the treasury stock is reflected as an increase or decrease in the additional paid-in capital component of stockholders' equity.

A Re-Issuance of Treasury Stock Has the Potential to Yield