Which of the following is correct about reissuing treasury stock?
A)If treasury stock is sold at a higher price than the stock's cost when the company reacquired it,a gain will be recognized.
B)If treasury stock is sold at a higher price than the stock's par value,a gain will be recognized.
C)If the treasury stock is sold at a lower price than the amount of the original issuance,a loss will be recognized.
D)A gain or loss on the reissuance of treasury stock is never recognized.

Question

Quizplus · Accepted Answer

When a company reissues shares previously reported as treasury stock,it does not report a gain or loss on sale,even if it issues the shares for more or less than they cost when the company reacquired them.

Which of the Following Is Correct About Reissuing Treasury Stock