When treasury stock is sold,the Paid-in Capital in Excess of Par is returned.

Name: When treasury stock is sold,the Paid-in Capital in Excess of Par is returned.
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When treasury stock is sold, the proceeds are credited to the company's cash account and the corresponding entry is a reduction of the treasury stock account. The Paid-in Capital in Excess of Par account is not affected by the sale of treasury stock.

When Treasury Stock Is Sold,the Paid-In Capital in Excess of Par