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

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PkWill Sakamoto · Accepted Answer

Final Answer : False, Explanation :  When a company resells treasury stock below its acquisition cost, the loss is not recorded as a loss in the income statement. Instead, it is accounted for by reducing additional paid-in capital or retained earnings, depending on the accounting practices of the specific company.

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

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