A Company Should Recognize a Gain on Treasury Stock

question 40

Multiple Choice

A company should recognize a gain on treasury stock:

• A)when treasury stock is purchased for less than the par value of the stock.
• B)when treasury stock is sold for more than the par value of the stock.
• C)when treasury stock is sold for less than the par value of the stock.
• D)in none of the above situations. No gain is recognized on treasury stock transactions.

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Definitions:

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