On November 30th, Terrys management completed negotiations with one of their suppliers to cover Terrys $520,000 account with shares of Terrys common stock. Rather than issue additional shares (and deal with the requirements of the SEC), Terry issued the supplier 99,000 shares of the treasury stock originally purchased on August 15th.

1. Make appropriate journal entry to record payment on A/P with treasury stock.

2. Make appropriate entry, if any to record tax expense of the payment on account