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 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
- debit to a loss account for $112,500
- credit to treasury stock for $90,000
- credit to a gain account for $112,500