A Company Issued 4,000 Shares of $5 Par Common Stock

Multiple Choice

A company issued 4,000 shares of $5 par common stock for $30 per share.The company purchased 1,200 shares as treasury stock at $32 per share.Later,the company reissued 400 shares of the treasury stock at $34 per share.Which of the following is true?

A) The Treasury Stock account should have a balance of $25,600.
B) The company has a gain of $800 that should appear on the income statement.
C) The Treasury Stock account should have a balance of $24,800.
D) The company has a gain of $1,600 that should appear on the income statement.