Under the cost method of accounting for treasury stock transactions, when the proceeds from a sale are greater than the cost, the excess over cost is treated as a(n)

A) increase in Other Expenses from Treasury Stock Sales
B) increase in Additional Paid-in Capital from Treasury Stock
C) increase in a contra-stockholders' equity account
D) increase in Additional Paid-in Capital on Common Stock
E) none of these

Cost Method

An accounting approach for investments, where the investment is recorded at its original purchase cost without subsequent change for market value fluctuations.

Treasury Stock Transactions

The buying, selling, or re-issuance of a company's own shares that were previously outstanding but were repurchased.

Additional Paid-in Capital

The amount of capital that is paid by investors above the par value of the stock during equity issuance.