If a corporation repurchases 500 shares of its previously-issued common stock for $5,000 and then reissues it for $4,000, which of the following statements is true regarding the difference in the amounts of the repurchase and reissuance?
A) It is reported as a loss on the sale of treasury stock.
B) It is reported as a gain on the sale of treasury stock.
C) It is a decrease in stockholders' equity.
D) It is an increase in stockholders' equity.
Correct Answer:
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