Which of the Following Statements About Treasury Stock Transactions Is

question 7

Multiple Choice

Which of the following statements about treasury stock transactions is true?

• A)Treasury stock is recorded as an asset by the acquiring company.
• B)Only losses on the sale of treasury stock are recorded on the income statement.
• C)Stockholders' equity is reduced when treasury stock is purchased.
• D)Both gains and losses on the sale of treasury stock are recorded on the income statement.