Porter Corporation holds 10,000 shares of its $10 par common stock as treasury stock,which was purchased in 2013 at a cost of $140,000.On December 10,2014,Porter sold all 10,000 shares for $260,000.Assuming that Porter used the cost method of accounting for treasury stock,this sale would result in a credit to

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Under the cost method, the sale of treasury stock above its cost increases Paid-In Capital from Treasury Stock. The cost of the treasury stock was $140,000, and it was sold for $260,000, resulting in a $120,000 increase to Paid-In Capital from Treasury Stock. Gains or losses on treasury stock transactions do not impact the income statement; instead, they adjust equity accounts.

Porter Corporation Holds 10,000 Shares of Its $10 Par Common