Thorpe Corporation holds 10,000 shares of its $10 par common stock as treasury stock, which was purchased in 2010 at a cost of $120,000. On December 10, 2011, Thorpe sold all 10,000 shares for $210,000. Assuming that Thorpe used the cost method of accounting for treasury stock, this sale would result in a credit to

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The sale of treasury stock above its cost results in a credit to "Paid-In Capital from Treasury Stock" for the excess amount over the cost. The shares were sold for $210,000, and the cost was $120,000, resulting in a $90,000 credit to Paid-In Capital from Treasury Stock.

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