Treasury stock which was purchased for $3,000 is sold for $3,500. As a result of these two transactions combined

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When treasury stock is sold for a higher amount than it was purchased for, the excess is recorded as "additional paid-in capital" in the stockholders' equity section of the balance sheet. Therefore, stockholders' equity will be increased by the difference between the sale price and purchase price, which in this case is $3,500 - $3,000 = $500. Income is not affected by the sale of treasury stock.

Treasury Stock Which Was Purchased for $3,000 Is Sold for $3,500