Answer:
a. debit to Paid-In Capital From Treasury Stock of $155,000
Explanation:
Treasury Stock purchase 25,000 shares = $762,500
Per share value = $762,500/25,000 shares
Per share value = $30.5
Selling price of 10,000 treasury stock = $15 × 10,000 = $150,000
Purchase price of 10,000 treasury stock = $30.5 × 10,000 = $305,000
The deference between sales and purchase of treasury stock = $155,000
Therefore, option A is the answer because paid-In Capital From Treasury Stock becomes a debit due to selling the stock in low price.
