If treasury stock is reissued at a price less than its cost, the debit entry could include:

Name: If treasury stock is reissued at a price less than its cost, the debit entry could include:
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When treasury stock is reissued at a price less than its cost, the company can debit the difference to Paid-in Capital from Treasury Stock if there is a sufficient balance. If not, the company debits the shortfall to Retained Earnings. Thus, both A and B are correct.

If Treasury Stock Is Reissued at a Price Less Than