When treasury shares are sold at a price above cost:
A) A gain account is credited.
B) A loss is reported.
C) A revenue account is credited.
D) Paid-in capital is increased.

Question

Quizplus · Accepted Answer

When treasury shares are sold at a price above their cost, the excess amount over cost is credited to a paid-in capital account related to treasury stock transactions, not recognized as a gain or revenue in the income statement.

When Treasury Shares Are Sold at a Price Above Cost