1. Tim Hardaway Co. was organized on January 2, 2017, with 500,000 authorized shares of $10 par value common stock. During 2017, Tim Hardaway Co. had the following capital transactions:

January 5issued 375,000 shares at $14 per share.

July 27purchased 25,000 shares at $11 per share.

November 25sold 18,000 shares of treasury stock at $9 per share.

Tim Hardaway Co. used the cost method to record the purchase of the treasury shares. What would be the balance in the Paid-in Capital from Treasury Stock account at December 31, 2017?

a. $0.

b. $18,000.

c. $36,000.

d. $54,000.

2. Continuing off the information from problem 1, Tim Hardaway Co. had the following transactions in 2018:

January 3 sold 4,000 shares of treasury stock @ $14 a share

March 15 sold the remaining shares of treasury stock @ $10 a share

As a result of these transactions, what would be the balance in the Paid-in Capital from Treasury Stock at March 31, 2018

a. $0

b. $11,000

c. $12,000

d. $5,000