A $1,500 loss will be reported in the income statement when a company sells treasury stock for $8,500 if the treasury stock was initially purchased for $10,000.

Question

Quizplus · Accepted Answer

Treasury stock transactions do not affect the income statement. Any loss or gain from selling treasury stock is recorded in the equity section of the balance sheet, not as a loss or gain in the income statement.

A $1,500 Loss Will Be Reported in the Income Statement