If treasury stock is sold at a price greater than its reacquisition costs, the difference is:

Question

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If treasury stock is sold at a price greater than its reacquisition costs, the difference is credited to Paid-in Capital from Treasury Stock Transactions. This is because treasury stock is initially recorded at its reacquisition cost, so any gain on the subsequent sale of treasury stock is credited to the paid-in capital account. It does not affect the retained earnings account.

If Treasury Stock Is Sold at a Price Greater Than