If a company reissues treasury stock above its cost, does the excess increase net income?
I see questions where the company buys shares for one price and reissues them for a higher price. It looks like a gain but the answer keeps saying zero impact on income.
No. Under the cost method, the company removes treasury stock at its recorded cost and credits the excess proceeds to APIC from treasury stock. The excess is an equity credit, not an income statement gain, because the company is transacting in its own shares.
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