When treasury stock is reissued at a price above cost:
A. The corporation recognizes a gain to be recorded on the income statement.
B. Total paid-in capital is increased.
C. The reissuance is treated as an extraordinary item in the corporation's income statement.
D. Retained earnings is increased.
Answer:B
When treasury stock is reissued at a price above cost:
A. The corporation recognizes a gain to be recorded on the income statement. B. Total paid-in capital is increased. C. The reissuance is treated as an extraordinary item in the corporation's income statement. D. Retained earnings is increased.