On January 1, Vermont Corp. had 40,000 shares of $10 par common stock issued and outstanding. All 40,000 shares had been issued in a prior period at $20 per share. On February 1, Vermont purchased 3,750 shares of treasury stock for $24 per share and later sold the treasury shares for $21 per share on March 1.

The entry to journalize the purchase of the treasury shares on Febuary 1 would include.

a= Credit to gain account for $112,500

b= Debit to Treasury Stock for $90,000

c= Credit to Treasury Stock for $90,000

d= Debit to loss account for $112,500

A= Debit to Treasury Stock for 90,000