The ABC Corporation presented the following information in its statement of financial position:

Common shares outstanding, 5,000 shares, par value of $ 30 per share $ 150,000 Paid-in capital in excess of par value $ 80,000 Retained earnings $ 100,000

13-A. The company purchased 120 of its own shares to be held as portfolio stock, at a cost of $ 60 per share. If the company uses the cost method, the Treasury stock account:

A. It will be presented as an asset and will have a balance of $ 7,200. B. It will be presented as an asset and will have a balance of $ 3,600. C. It will be presented as a reduction of the estate in the amount of $ 3,600. D. It will be presented as a reduction of the estate in the amount of $ 7,200.

13-B. If the company reissues 100 of the 120 shares in the portfolio of the previous question at a price of $ 65 each, it will credit:

A. Paid-in capital from treasury stock for $ 500 B. Gain on sale of treasury stock for $ 500 C. Retained earnings of $ 500 D. Retained earnings of $ 6,500

13-C. Assume that the 100 stocks in the portfolio were reissued at a price of $ 55 each. The company will debit:

A. Paid-in capital from treasury stock for $ 500 B. Loss on sale of treasury stock for $ 500 C. Retained earnings of $ 500 D. Retained earnings of $ 5,500