Under the Cost Method of Accounting for Treasury Stock Transactions

question 2

Multiple Choice

Under the cost method of accounting for treasury stock transactions, when the proceeds from a sale are greater than the cost, the excess over cost is treated as a(n)

• A) increase in Other Expenses from Treasury Stock Sales
• B) increase in Additional Paid-in Capital from Treasury Stock
• C) increase in a contra-stockholders' equity account
• D) None of these choices

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