Barkley's Resort had 2,000 shares of $20 par value common stock outstanding.On June 1,Barkley's purchased 200 shares of treasury stock for $21 per share and later reissued them for $22 per share.What amount of profit from the re-issuance will be reported on the income statement?

Question

Quizplus · Accepted Answer

The profit from the re-issuance of treasury stock is not reported on the income statement. Instead, it is recorded as an increase in additional paid-in capital in the equity section of the balance sheet.

Barkley's Resort Had 2,000 Shares of $20 Par Value Common