Which of the Following Is Correct About Reissuing Treasury Stock

question 178

Multiple Choice

Which of the following is correct 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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Definitions:

Debt

A sum of money that is owed or due.

Thrift

The practice of saving money and spending it wisely, often associated with frugal living.

Reconstruction Finance Corporation

Federal program established in 1932 under President Herbert Hoover to loan money to banks and other institutions to help them avert bankruptcy.

Herbert Hoover

The 31st President of the United States, serving from 1929 to 1933, best known for his leadership during the early years of the Great Depression.