medium · Financial Accounting stockholders-equity
A company repurchases 1,000 shares of its $1 par value stock for $50 each (Cost Method). It later reissues these shares for $60 each.
What is the impact on the Income Statement from the reissuance?
- No impact; the $10,000 excess is credited to APIC-Treasury.
- A $10,000 Gain on Sale of Stock is reported in Net Income.
- Revenue increases by $60,000.
- Retained Earnings increases by $10,000 directly.
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