If 100 shares of treasury stock were purchased for $50 per share and then sold at $60 per share, $1,000 of income is reported on the income statement.

Question

Quizplus · Accepted Answer

The sale of treasury stock does not result in income being reported on the income statement. Instead, any gains or losses are reported as a component of equity. In this case, the gain would be $10 per share, or $1,000 in total, but it would not be reported as income.

If 100 Shares of Treasury Stock Were Purchased for $50