Palomino Enterprises reissued 2,000 shares of its treasury stock for $20,000.Prior to the reissuance,the Treasury Stock balance was $24,000,which included the $16,000 cost of the 2,000 shares reissued.After recording this transaction:

Question

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The stock reissue would be recorded with a debit to Cash for $20,000,a credit to Treasury Stock for $16,000 (or 2,000 shares × cost of $8 per share),and a credit to Additional Paid-in Capital for $4,000 (or $20,000 − $16,000).
Ending balance of treasury stock = Beginning balance − Cost of shares reissued
= $24,000 − $16,000 = $8,000

Palomino Enterprises Reissued 2,000 Shares of Its Treasury Stock for $20,000.Prior