Reissuing treasury stock at a price higher than the price paid to acquire the stock results in a(n):
A)increase in contributed capital
B)decrease in contributed capital
C)loss reported on the income statement
D)gain reported on the income statement

Question

Quizplus · Accepted Answer

Reissuing treasury stock at a price higher than the cost results in an increase in contributed capital because the excess amount over the cost is credited to additional paid-in capital, not reported as a gain in the income statement.

Reissuing Treasury Stock at a Price Higher Than the Price