Knight Corp. holds 20,000 shares of its $10 par value common stock as treasury stock...
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Accounting
Knight Corp. holds 20,000 shares of its $10 par value common stock as treasury stock reacquired in year 1 for $240,000. On December 12, year 3, Knight reissued all 20,000 shares for $380,000. Under the cost method of accounting for treasury stock, the reissuance resulted in a credit to:
Common stock of $200,000.
Retained earnings of $140,000.
Gain on sale of investments of $140,000.
Additional paid-in capital of $140,000
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