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, then .

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.

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