1. The entry to record Gertrudiss issuance of 15,000 shares of its common stock (par value $5) sold at a price of $12.50 per share includes a:

a. debit to Retained Earnings for $75,000

b. credit to Common Stock for $75,000

c. debit to Treasury Stock for $187,500

d. credit to Additional Paid in Capital (APIC) for $100,000

2. The Small Company sells an old machine that was purchased at a cost of $15,000, is 40% depreciated, and was sold for $7,000 cash. As a result of the sale of the machine, Small Company should record a:

a.	$2,000 loss.
b.	$0 gain or loss.
c.	$2,000 gain.
d.	$1,000 gain.