How Should a Gain from the Sale of Treasury Stock

question 79

Multiple Choice

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

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

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Definitions:

Repression

To force painful ideas or impulses into the subconscious.

Intellectualization

To employ reasoning to avoid confrontations or stressful situations.

Physical Boundaries

The demarcation of personal space and physical limits respected between individuals to ensure privacy and comfort.

Emotional Boundaries

Guidelines that individuals set for themselves to limit who can access their emotions and thoughts, and how they can be treated by others.