ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 351

41. How should a "gain" from the sale of treasury stock be
reflected when using the cost method of recording treasury stock
transactions?

a. As ordinary earnings shown on the income statement.

b. As paid-in capital from treasury stock transactions.

c. As an increase in the amount shown for common stock.