Under the Cost Method of Accounting for Treasury Stock Transactions

Multiple Choice

Under the cost method of accounting for treasury stock transactions, when the proceeds from a sale are greater than the cost, the excess over cost is treated as a(n)

A) increase in Other Expenses from Treasury Stock Sales
B) increase in Additional Paid-in Capital from Treasury Stock
C) increase in a contra-stockholders' equity account
D) increase in Additional Paid-in Capital on Common Stock
E) none of these