Use the following information to answer questions 5, 6, 7 and 8. The Stockholders' Equity of Kmart at the start of the year (January 1) was as follows (all accounts have their normal balance). The company uses the cost method to account for treasury stock. Description Common Stock ($1 par) Paid in Capital - Common Stock Amount $500 100 300 Treasury Stock (10 shares of common at cost) 50 Retained Earnings 5. Assume that on March 20 the company sold all of its treasury stock for $8 per share and paid a $5 broker's fee related to the sale. The entry to record this transaction, assuming use of the cost method to account for treasury stock, would be: a. Cash Treasury Stock Gain on Sale 75 50