Coy, Inc Initially Issued 200,000 Shares of $1 Par Value Stock

Coy, Inc. initially issued 200,000 shares of $1 par value stock for $1,000,000 in 2007. In 2008, the company repurchased 20,000 shares for $200,000. In 2009, 10,000 of the repurchased shares were resold for $160,000. In its balance sheet dated December 31, 2009, Coy, Inc.'s treasury stock account shows a balance of:

A) $ 0.
B) $ 40,000.
C) $100,000.
D) $200,000.A treasury stock account is created when a company reacquires its own stock as treasury stock.The full purchase price (cost) is debited to Treasury Stock.When treasury stock is sold, the Treasury Stock account is credited for the cost per share, with an additional credit to Paid-in Capital, Treasury Stock (or Paid-in Capital Repurchased Shares) , if the sale price exceeds the reacquisition price.The 2008 repurchase is accounted for with a debit to Treasury Stock for $200,000.When half of the treasury stock is resold, $100,000 is credited to Treasury Stock and $60,000 is credited to Paid-In Capital, Treasury Stock.The balance in the Treasury Stock account is ($200,000 $100,000 =) $100,000.