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:

Coal

A combustible black or brownish-black sedimentary rock used primarily as a fuel in the production of electricity and heat, formed from plant remains over millions of years.

Oil

A viscous liquid derived from petroleum, used as fuel and in the manufacture of various goods.

Natural Gas

An energy-producing fossil fuel that predominantly contains methane, utilized for heating, cooking, and generating electricity.

Net Energy Ratio

A metric that compares the amount of energy produced to the amount of energy used to produce it.