Aaron, Inc. paid $120,000 to buy back 10,000 shares of its $1 par value common stock. This stock was sold later at a selling price of $8 per share. The entry to record the sale includes a

A. debit to Additional Paid In Capital - Treasury Stock for $120,000
B. credit to Retained Earnings for $10,000
C. credit to Additional Paid In Capital - Treasury Stock for $10,000
D. debit to Retained Earnings for $40,000

Ans: D. debit to Retained Earnings for $40,000

Business

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