The sale of treasury stock at an amount greater than cost does not result in a gain on the income statement.

Question

Quizplus · Accepted Answer

The sale of treasury stock at an amount greater than cost is generally recorded as a debit to cash and a credit to treasury stock, with any difference between the sale price and cost recorded as an increase or decrease to additional paid-in capital. This transaction does not result in a gain or loss on the income statement.

The Sale of Treasury Stock at an Amount Greater Than