When a company reissues (or sells)shares of its treasury stock at an amount different than its cost,it reports a gain or a loss on the sale.

Question

Quizplus · Accepted Answer

When a company reissues shares previously reported as treasury stock,it does not report a gain or loss on sale,even if it issues the shares for more or less than they cost when the company reacquired them.GAAP does not permit a corporation to report income or losses from investments in its own stock because transactions with the owners are not considered profit-making activities.

When a Company Reissues (Or Sells)shares of Its Treasury Stock