Which company should recognize a gain on treasury shares

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Problem 1: A company should recognize a gain on treasury shares:

Option 1: when treasury shares is sold for more than the par value of the shares.

Option 2: when treasury shares is purchased for less than the par value of the shares.

Option 3: when treasury shares is sold for less than the par value of the shares.

Option 4: in none of the above situations. No gain is recognized on treasury shares transactions.

Option 5: None of the above.

Reference no: EM132617652

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