If treasury stock is sold for less than cost,the entry to record the transaction would include a:

Question

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When treasury stock is sold for less than its cost, the entry includes a credit to Treasury Stock for the cost of the shares. The difference, if sold for less, is typically accounted for by debiting a paid-in capital account or retained earnings, but not by debiting Treasury Stock or Common Stock directly.

If Treasury Stock Is Sold for Less Than Cost,the Entry