How should a "gain" from the sale of treasury stock be reflected when using the cost method of recording treasury stock transactions?

How should a "gain" from the sale of treasury stock be reflected when using the cost method of recording treasury stock transactions?

a. As ordinary earnings shown on the income statement.
b. As paid-in capital from treasury stock transactions.
c. As an increase in the amount shown for common stock.
d. As an extraordinary item shown on the income statement.


Answer: As paid-in capital from treasury stock transactions