If a Corporation Repurchases 500 Shares of Its Previously-Issued Common

Short Answer

If a corporation repurchases 500 shares of its previously-issued common stock for $5,000 and then reissues it for $4,000, which of the following statements is true regarding the difference in the amounts of the repurchase and reissuance?
a.It is reported as a loss on the sale of treasury stock.
b.It is reported as a gain on the sale of treasury stock.
c.It is a decrease in stockholders' equity.
d.It is an increase in stockholders' equity.