Net income increases when treasury stock is resold for an amount in excess of the amount paid when the common stock was repurchased.

Name: Net income increases when treasury stock is resold for an amount in excess of the amount paid when the common stock was repurchased.
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Question

Quizplus · Accepted Answer

The resale of treasury stock above its cost affects additional paid-in capital, not net income, as it is a transaction with shareholders and not an operational activity.

Net Income Increases When Treasury Stock Is Resold for an Amount