On January 1, Vermont Corporation Had 40,000 Shares of $10

Multiple Choice

On January 1, Vermont Corporation had 40,000 shares of $10 par value common stock issued and outstanding. All 40,000 shares had been issued in a prior period at $20 per share. On February 1, Vermont purchased 3,750 shares of treasury stock for $24 per share and later sold the treasury shares for $21 per share on March 1.​The journal entry to record the purchase of the treasury shares on February 1 would include a

A) credit to Treasury Stock for $90,000
B) debit to Treasury Stock for $90,000
C) debit to a loss account for $112,500
D) credit to a gain account for $112,500