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A firm holds 1,000 treasury shares which it acquired for $15 per share (par value $1). The firm reissues (i.e. sells) 500 of the treasury
- A firm holds 1,000 treasury shares which it acquired for $15 per share (par value $1). The firm reissues (i.e. sells) 500 of the treasury shares for $20 per share. Using the cost method, what is the entry to record the sale of the treasury stock?
| a. | Cash 10,000 Treasury Stock 10,000 |
| b. | Cash 10,000 Treasury Stock 7,500 APIC 2,500 |
| c. | Cash 10,000 Treasury Stock 500 APIC 9,500 |
| d. | Cash 10,000 Common Stock-Par 1,000 Treasury Stock 11,000 |
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