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
CPA Exam
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