Slaton Company originally issued 4,000 ordinary shares with a $10 par value for $90,000 ($30 per share). Slaton subsequently purchases 400 treasury shares for $27 per share and resells the 400 treasury shares for $29 per share. In the entry to record the sale of the treasury shares, there will be a

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- The purchase of treasury shares reduces both the number of outstanding shares and the amount of shareholders' equity.
- The reissuance of treasury shares at a higher price than their cost will result in a gain on the sale of treasury shares. 
- The gain is calculated as the difference between the proceeds from the sale and the cost of the treasury shares sold, which is $29 - $27 = $2 per share. 
- The total gain on the sale of 400 treasury shares is therefore $800 ($2 x 400).
- The gain is recorded in Share Premium-Treasury Shares, which is a component of shareholders' equity that represents the excess of proceeds over cost from the sale of treasury shares. 
- The entry to record the sale of the treasury shares will include a credit to Treasury Shares for the cost of the shares sold ($10,800), a credit to Share Premium-Treasury Shares for the gain on the sale ($800), and a debit to Cash for the proceeds from the sale ($11,600). 
- Therefore, the correct answer is D.

Slaton Company Originally Issued 4,000 Ordinary Shares with a $10