Pre-lecture Question 3 When a company sells treasury stock below its cost, it usually debits the excess of cost over selling price to O Paid-in Capital from Treasury Stock. O Paid-in Capital in Excess of Par. Loss on Sale of Treasury Stock. O Retained Earnings. Pre-lecture Question 3 When a company sells treasury stock below its cost, it usually debits the excess of cost over selling price to O Paid-in Capital from Treasury Stock. O Paid-in Capital in Excess of Par. Loss on Sale of Treasury Stock. O Retained Earnings