QUESTION 3 "Sheridan Company purchased its own par value stock on January 1, Year 17 for $18400 and debited the treasury stock account for the purchase price. The stock was subsequently sold for $11700. The $6700 difference between the cost and sales price should be recorded as a deduction from" Oretained earnings. "additional paid-in capital to the extent that previous net """gains"" from sales of the same class of stock are included therein; otherwise, from retained earnings." net income. "additional paid-in capital without regard as to whether or not there have been previous net ""gains""" from sales of the same class of stock included therein."