a. paid-in capital from treasury stock.
b. capital stock.
c. retained earnings.
d. other income.
40. Porter Corp. purchased its own par value stock on January 1, 2012 for $ 20,000 and debited the treasury stock account for the purchase price. The stock was subsequently sold for $ 12,000. The $ 8,000 difference between the cost and sales price should be recorded as a deduction from
a. additional paid-in capital to the extent that previous net " gains " from sales of the same class of stock are included therein; otherwise, from retained earnings.
b. additional paid-in capital without regard as to whether or not there have been previous net " gains " from sales of the same class of stock included therein.
c. retained earnings.