Mountain View Co. buys back 3,000 shares of its $10 par value common stock from investors at $126 per share. This stock repurchase would be recorded with a debit to:

A. Treasury Stock and a credit to Cash for $378,000.
B. Cash and a credit to Treasury Stock for $378,000.
C. Treasury Stock for $30,000, a debit to Additional Paid-in Capital for $348,000, and a credit to Cash for $378,000.
D. Treasury Stock and a credit to Cash for $30,000.


Answer: A

Business

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