Barkley's Resort had 2,800 shares of $21 par value common stock outstanding. On June 1, Barkley's purchased 230 shares of treasury stock for $29 per share and later reissued them for $26 per share. What amount of profit from the reissuance will be reported on the income statement?

Question

Quizplus · Accepted Answer

When treasury stock is reissued, any difference between its purchase and sale price does not result in a profit or loss on the income statement. Instead, it is recorded in the equity section of the balance sheet.

Barkley's Resort Had 2,800 Shares of $21 Par Value Common