Please refer to the following information for Petra Sales Company:
• Common stock, $1.00 par, 200,000 issued, 180,000 outstanding
• Paid-in capital in excess of par: $1,600,000
• Retained earnings: $2,440,000
• Treasury stock: 20,000 shares purchased at $12 per share
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If Petra Sales sells 10,000 shares of treasury stock at $14 per share, the company will record a gain on the sale of treasury stock of $20,000.

Question

Quizplus · Accepted Answer

The given information does not provide enough details to calculate the gain on sale of treasury stock. The gain or loss on the sale of treasury stock is calculated as the difference between the selling price and the cost of the treasury stock sold. The cost of the treasury stock sold is not provided in the given information. Therefore, the statement cannot be determined as true or false based on the given information.

Please Refer to the Following Information for Petra Sales Company