Jindani
Aug 7, 2009, 05:49 PM
Thorpe Corporation holds 10,000 shares of its $10 par common stock as treasury stock,
which was purchased in 2006 at a cost of $120,000. On December 10, 2007, Thorpe sold
all 10,000 shares for $210,000. Assuming that Thorpe used the cost method of accounting
for treasury stock, this sale would result in a credit to
A. Paid-In Capital from Treasury Stock of $90,000.
B. Paid-In Capital from Treasury Stock of $110,000.
C. Gain on Sale of Treasury Stock of $90,000.
D. Retained Earnings of $90,000.
which was purchased in 2006 at a cost of $120,000. On December 10, 2007, Thorpe sold
all 10,000 shares for $210,000. Assuming that Thorpe used the cost method of accounting
for treasury stock, this sale would result in a credit to
A. Paid-In Capital from Treasury Stock of $90,000.
B. Paid-In Capital from Treasury Stock of $110,000.
C. Gain on Sale of Treasury Stock of $90,000.
D. Retained Earnings of $90,000.