1. What is treasury stock? Why do firms use it? Where does it appear on a corporation’s financial statements? 2. When treasury stock is bought and sold, the transactions do not result in gains or...

1. What is treasury stock? Why do firms use it? Where does it appear on a corporation’s financial statements?

2. When treasury stock is bought and sold, the transactions do not result in gains or losses reported on the income statement. What account or accounts are used instead? Why are no income statement amounts recorded?