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Cherokee Inc

Question 99

Multiple Choice

Cherokee Inc. paid $180000 to buy back 20000 shares of its $1 par value common stock. This stock was sold later at a selling price of $6 per share. The entry to record the sale includes a


A) debit to Retained Earnings for $60000.
B) credit to Retained Earnings for $20000.
C) debit to Paid-in Capital from Treasury Stock for $180000.
D) credit to Paid-in Capital from Treasury Stock for $20000.

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