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A corporation reacquired 1,000 shares of its $0.01 par value common stock outstanding, paying $14 per share. Three months later, the 500 shares of the treasury stock was reissued for $16 per share. The journal entry to record the sale of the treasury stock will include:
A) a credit to Treasury Stock for $8,000
B) a credit to Treasury Stock for $7,000.
C) a debit to Cash for $7,000
D) a credit to Capital from Treasury Stock Transaction of $7,000.
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Based on our data, we think this problem is relevant for Professor Basu's class at UMD.