medium · Financial Accounting stockholders-equity
A firm reissues $1,000 treasury shares for $50 per share. These shares were originally repurchased at $40 per share.
How should the $10,000 difference be recorded?
- As a credit to Additional Paid-In Capital — Treasury for $10,000
- As a credit to Gain on Sale of Treasury Stock in the Income Statement for $10,000
- As a credit to Common Stock for $10,000
- As a credit to Retained Earnings for $10,000
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