Porter Corp

Porter Corp.purchased its own par value shares on January 1, 2010 for $20,000 and debited the treasury shares account for the purchase price.The shares were subsequently sold for $12,000.The $8,000 difference between the cost and sales price should be recorded as a deduction from

A) share premium-treasury to the extent that previous net "gains" from sales of the same class of stock are included therein; otherwise, from retained earnings.
B) share premium-treasury without regard as to whether or not there have been previous net "gains" from sales of the same class of shares included therein.
C) retained earnings.
D) net income.