Part I in Claudia's life and she has turned to you to please explain the following: (1) What is treasury stock and what type of account is it? (2) From an accounting standpoint, isn't treasury stock just a regular equity account with a credit balance? (3) Why don't corporations pay dividends on shares of treasury stock? Is this true of cash dividends and stock dividends? Part II Foster Corp. purchased 1,000 shares of its $6 par value common stock for $12 per share. The journal entry was recorded as: Treasury Stock 12,000 Cash. 12,000 have selected. a) Foster sold 100 shares of its treasury stock at $14 per share. b) Foster sold 100 shares of its treasury stock at $8 per share. c) Foster sold 100 shares of its treasury stock at $10 per share. d) Foster sold 50 shares of its treasury stock at $13 per share. e) Foster sold 50 shares of its treasury stock at $7 per share. f) Foster sold 50 shares of its treasury stock at $10 per share