The ABC Corporation presented the following information in its statement of financial position: Common shares outstanding, 5,000 shares, $ 30 par value per share $ 150,000 Paid-in capital in excess of par value 80,000 Retained Earnings 100,000 1. The company purchased 120 of its own shares to be held as treasury 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 an equity reduction in the amount of $ 3,600. d. It will be presented as an equity reduction in the amount of $ 7,200. 2. If the company reissues 100 of the 120 treasury stocks 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 3. Assume that the 100 treasury stocks o 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