Treasury Stock Clockman Corporation has recently become the target of a takeover attempt by William Face, one of its larger shareholders. Face currently owns 1,000 shares of Clockman, giving him a 40% stake in the company. The current value of Faces shares totals $100,000. After negotiations, Clockman and Face have entered into an arrangement whereby Clockman will buy half of Faces stake in the company for $75,000, and Face will agree not to buy any more shares of Clockman on the open market. You are an accountant at Clockman. In discussing this transaction with you, the CEO of Clockman says, Even though weve paid $25,000 above market value for Faces shares, we can still allocate the full purchase price to our Treasury Stock account. Is the CEO correct? Research the appropriate Codication and describe proper treatment of this situation.