The Jones Corporation uses the cost method of accounting for treasury stock. Which of the following transactions will cause a net decrease in total additional paid-in capital?

  1. Sale of treasury stock at a price in excess of cost.
  2. Retirement of treasury stock whose cost is in excess of par value but less than the original issuance price.
  3. Purchase of treasury stock at a price in excess of par value but less than the original issuance price.
  4. Purchase of treasury stock at a price in excess of par and in excess of the original issuance price.