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

question 95

Multiple Choice

How should a "gain" from the sale of treasury stock be reflected when using the cost method of recording treasury stock transactions?

• A) As ordinary earnings shown on the income statement.
• B) As paid-in capital from treasury stock transactions.
• C) As an increase in the amount shown for common stock.
• D) As an extraordinary item shown on the income statement.

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