A re-issuance of treasury stock at a price lower than what it was repurchased for results in a loss on the income statement.

Question

Quizplus · Accepted Answer

The re-issuance of treasury stock at a price lower than its repurchase price does not result in a loss on the income statement. Instead, it affects the equity section of the balance sheet, typically reducing additional paid-in capital or retained earnings.

A Re-Issuance of Treasury Stock at a Price Lower Than