Which of the Following Is TRUE About Reissuing Treasury Stock

question 135

Multiple Choice

Which of the following is TRUE 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.

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