The following information pertains to treasury stock sold by Lee Corp. to an unrelated broker in 2015: - Proceed received : $50,000 - Cost: $30,000 - Par value: $9,000 What amount of capital gain should Lee recognize in 2015 on the sale of this treasury stock?

The following information pertains to treasury stock sold by Lee Corp. to an unrelated broker in 2015: - Proceed received : $50,000 - Cost: $30,000 - Par value: $9,000 What amount of capital gain should Lee recognize in 2015 on the sale of this treasury stock?

The following information pertains to treasury stock sold by Lee Corp. to an unrelated broker in 2015:
- Proceed received : $50,000
- Cost: $30,000
- Par value: $9,000
What amount of capital gain should Lee recognize in 2015 on the sale of this treasury stock?






a. $0
b. $8,000
c. $20,000
d. $30,500






Answer: A