All of the following regarding accounting for Treasury Stock under U.S. GAAP and IRFS are true except: 1-Only gains are recognized on retirements of treasury stock under IFRS. 2-Gains are not recognized on retirements of treasury stock under U. S. GAAP. 3-IFRS applies the principle that companies do not record gains or losses on transactions involving their own stock. 4-U. S. GAAP applies the principle that companies do not record gains or losses on transactions involving their own stock. 5-A company's assets and equity are always reduced by the amount paid for the retiring stock