On January 1, Vermont Corporation had 38,300 shares of $12 par value common stock issued and outstanding. All 38,300 shares had been issued in a prior period at $18 per share. On February 1, Vermont purchased 1,020 shares of treasury stock for $27 per share and later sold the treasury shares for $18 per share on March 1.

The journal entry to record the purchase of the treasury shares on February 1 would include a

A. credit to Treasury Stock for $27,540

B. debit to Treasury Stock for $27,540

C. debit to a loss account for $9,180

D. credit to a gain account for $9,180