A "gain" on the sale of treasury shares should be credited to

Name: A "gain" on the sale of treasury shares should be credited to
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Question

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Gains on the sale of treasury shares are credited to contributed surplus because they are transactions with shareholders and do not affect the income statement. This treatment ensures that profits from such transactions are not recognized as company income but rather as an increase in equity, separate from earned capital.

A "Gain" on the Sale of Treasury Shares Should Be