A corporation must record a gain on sale for the sale of treasury stock at an amount greater than its purchase price.

Name: A corporation must record a gain on sale for the sale of treasury stock at an amount greater than its purchase price.
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Question

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Treasury stock transactions do not result in gains or losses on the income statement; instead, any excess over the purchase price is credited to additional paid-in capital.

A Corporation Must Record a Gain on Sale for the Sale