The sale of treasury stock at an amount greater than cost results in a gain to be reported on the income statement.

Name: The sale of treasury stock at an amount greater than cost results in a gain to be reported on the income statement.
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The sale of treasury stock above its cost is not reported as a gain on the income statement; instead, it is recorded as an increase in additional paid-in capital in the equity section of the balance sheet.

The Sale of Treasury Stock at an Amount Greater Than