If treasury stock is sold for less than cost, the entry to record the transaction would include a:

Name: If treasury stock is sold for less than cost, the entry to record the transaction would include a:
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When treasury stock is sold for less than its cost, the entry includes a credit to Treasury Stock for the cost of the shares. The difference between the selling price and the cost (if not adjusted through additional paid-in capital) reflects a decrease in equity.

If Treasury Stock Is Sold for Less Than Cost, the Entry