Question: How should the difference between cost and selling price from the sale of treasury stock be reflected when using the cost method of recording treasury
How should the difference between cost and selling price from the sale of treasury stock be reflected when using the cost method of recording treasury stock transactions? Assume the selling price is greater than the cost.
| As an extraordinary item shown on the income statement. | ||
| As ordinary earnings shown on the income statement. | ||
| As paid-in capital from treasury stock transactions. | ||
| As an increase in the amount shown for common stock. |
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