2016年美国CPA模拟试题：Financial 2

　　If a corporation sells some of its treasury stock at a price that exceeds its cost, this excess should be：

　　a. Reported as a gain in the income statement.

　　b. Credited to retained earnings.

　　c. Credited to additional paid-in capital.

　　d. Treated as a reduction in the carrying amount of remaining treasury stock.

　　答案：C

　　Explanation

　　Rule： There is no gain or loss on the purchase and/or sale of treasury stock. Any “difference” goes to “paid-in capital，” or if there is not enough paid-in capital to absorb a loss, the loss would be debited （subtracted） from “retained earnings.”

　　Choice “c” is correct. When treasury stock is sold at a price that exceeds its cost, the excess would be credited to “paid-in capital.”

　　Choice “a” is incorrect. There is no gain recognized on the sale of treasury stock sold in excess of cost.

　　Choice “d” is incorrect. An “excess” （gain） from the sale of treasury stock would not reduce the carrying amount of the remaining treasury stock.

　　Choice “b” is incorrect. Excesses （gains） from sales of treasury stock are not credited to retained earnings.