When a corporation purchases its own stock using the cost me

When a corporation purchases its own stock using the cost method and resells it later at a higher price, a credit entry is made to which account(s) in the later sale?

A. Both treasury stock and paid in capital from treasury stock

B. Treasury stock but not paid in capital from treasury stock

C. Paid in capital from treasury stock but not treasury stock

D. Neither paid in capital from treasury stock nor treasury stock

Solution

correct option is \"A\" -Both treasury stock and paid in capital from treasury stock

entry at time of resell :