Intermediate Accounting 14th Edition

Published by Wiley
ISBN 10: 0470587237
ISBN 13: 978-0-47058-723-2

Chapter 5 - Balance Sheet and Statement of Cash Flows - Questions - Page 279: 15a

Answer

Treasury costs recorded at cost should be recorded under the stockholder’s equity section. The terminology used should be: “Treasury stock (at cost)”.

Work Step by Step

It should, however, be noted that this represents a reduction in stockholders equity.
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