If 100 shares of treasury stock were purchased for $50 per share and then sold at $60 per share, $1,000 of income is reported in the income statement.

Question

Quizplus · Accepted Answer

The sale of treasury stock results in a gain or loss that is reported in the equity section of the balance sheet, not in the income statement. Therefore, there would be no income reported in the income statement from the sale of treasury stock.

If 100 Shares of Treasury Stock Were Purchased for $50