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Renfro Corporation: amount of paid-in capital from treasury

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Renfro Corporation started business in 1999 by issuing 200,000 shares of $20 par common stock for $36 each. In 2004, 20,000 of these shares were purchased for $52 per share by Renfro Corporation and held as treasury stock. On June 15, 2008, these 20,000 shares were exchanged for a piece of property that had an assessed value of $810,000. Renfro's stock is actively traded and had a market price of $60 on June 15, 2008. The cost method is used to account for treasury stock. The amount of paid-in capital from treasury stock transactions resulting from the above events would be

1. 800,000
2. 160,000
3. 390,000
4. 480,000

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This includes detailed explanation to answer what is the amount of paid-in capital from treasury stock transactions resulting from the above events would be.

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Renfro Corporation started business in 1999 by issuing 200,000 shares of $20 par common stock for $36 each. In 2004, 20,000 of these shares were purchased for $52 per ...

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