If a company resells treasury shares below the acquisition cost, a loss from the sale of treasury shares is recorded.

Name: If a company resells treasury shares below the acquisition cost, a loss from the sale of treasury shares is recorded.
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When a company resells treasury shares, any difference between the sale price and the acquisition cost is not recorded as a gain or loss but is instead treated as an adjustment to shareholders' equity.

If a Company Resells Treasury Shares Below the Acquisition Cost