Andrews, Inc. paid $45,000 to buy back 9,000 shares of its $1 par value ordinary shares. These shares were sold later at a selling price of $7 per share. The entry to record the sale includes a

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The sale of treasury shares above cost results in a credit to Share Premium-Treasury for the excess amount over the cost. The shares were bought back at $5 per share ($45,000/9,000 shares) and sold at $7 per share, resulting in a $2 per share premium. For 9,000 shares, this premium totals $18,000.