Refer to the following information for Tolan Corporation:
• Common Stock, $1.00 par, 106,000 shares issued, 100,000 shares outstanding
• Paid-In Capital in Excess of Par—Common: $2,190,000
• Retained Earnings: $920,000
• Treasury Stock: 6000 shares purchased at $21 per share
If Tolan resold 2500 shares of treasury stock for $22.50 per share, which of the following statements would be TRUE?
A) The Treasury Stock account would decrease by $26,250.
B) The Paid-In Capital in Excess of Par—Common account would increase by $2500.
C) The Treasury Stock account would decrease by $52,500.
D) The Retained Earnings account would increase by $56,250.
C) The Treasury Stock account would decrease by $52,500.
Explanation: 2500 × $21 = $52,500
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