Evergreen Industries has a $13,000 credit balance in Paid-In Capital–Treasury Stock. It sells 1,000 shares of treasury stock, which the company reacquired at $59/share, for $56/share. After the transaction, what will the balance be in the Paid-In Capital in Excess of Par–Treasury account?
A) $10,000 credit
B) $3,000 debit
C) $16,000 credit
D) $13,000 credit
A) $10,000 credit
Explanation: shares × difference between reacquired and sale price, then subtract this amount from the balance in the p-i-c account; ex: 1,000 ($59 - $56) = $3,000; $13,000 - $3,000 = $10,000
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