On March 1st, Nichols Corporation purchased 1,000 shares of previously issued common stock, paying $3 per share. On April 1st, Nichols sold 600 shares at $4 per share. What is the amount of Paid-In Capital from Treasury Stock Transactions for the sale of 600 shares?

Answer:The Paid-In Capital from Treasury Stock Transactions for the sale of 600 shares is $600.Step-by-step explanation:Total number of shares = 1000.Sales price is[tex]600\times4=2400[/tex] dollarsWhen treasury stocks are sold, cash is debited for the sales price.And simultaneously, the treasury stock is credited for the purchase price of the stock = [tex]600\times3=1800[/tex] dollarsPaid-In Capital from Treasury Stock Transactions = [tex]2400-1800=600[/tex] dollars (difference between sale and purchase price)So, the amount of Paid-In Capital from Treasury Stock Transactions for the sale of 600 shares is $600.