Answer:
the paid-in capital from treasury stock transactions would be reduced by $20000
Explanation:
Treasury stock is the stock that is bought by the stakeholders of the issuing company.The treasury stock does not receive dividends. Paid in capital are money being paid by investors in exchange for shares.
If the company resells Treasury Stock that originally cost $60,000 for $40,000.
The paid-in capital from treasury stock transactions to be reduced = $60,000 - $40,000 = $20000
