On January 1, 20x5, Dove Valley Corporation had 100,000 shares of $10 par value common stock issued and outstanding. All 100,000 shares had been issued in a prior period at $30 per share. On February 1, 20x5, Dove Valley purchased 4,000 shares of treasury stock for $36 per share and later sold the treasury shares for $40 per share on March 2, 20x5. The entry to record the sale of the treasury
shares on March 2, 20x5, is :
A) Cash 160,000 Common Stock 144,000Retained Earnings 16,000
B) Cash 160,000 Treasury Stock-Common 144,000Paid-in Capital, Treasury Stock 16,000
C) Cash 160,000 Treasury Stock-Common 144,000Retained Earnings 16,000
D) Cash 160,000 Treasury Stock-Common 144,000Gain on Treasury Stock 16,000
B
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