If a company resells treasury shares below the acquisition cost,then it must report a loss from the sale of treasury shares.

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Quizplus · Accepted Answer

When a company resells treasury shares below the acquisition cost, it does not report a loss on the income statement. Instead, the difference is typically charged against additional paid-in capital or retained earnings, as treasury stock transactions are considered equity transactions, not income or loss transactions.

If a Company Resells Treasury Shares Below the Acquisition Cost,then