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

Question 105
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 $20.00 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