Answer: If the company resells Treasury Stock that originally cost $50,000 for $40,000, then paid-in capital from treasury stock transactions is reduced by $10,000.
Explanation:
Given: A company had the following treasury-stock related account balances: Treasury Stock - $150,000
Paid-in Capital from Treasury Stock Transactions - $15,000
If the company resells Treasury Stock that originally cost $50,000 for $40,000.
$40,000< $50,000 implies reduction in paid-in capital from treasury stock.
i.e. Reduced Paid-in Capital from Treasury Stock Transactions = $50,000- $40,000
= $10,000
So, if the company resells Treasury Stock that originally cost $50,000 for $40,000, then paid-in capital from treasury stock transactions is reduced by $10,000.
