GE Buys Back 300,000 Shares of Its Stock from Investors

Multiple Choice

GE buys back 300,000 shares of its stock from investors at $45 a share. Two years later it reissues this sto ck for $65 a share. The stock reissue would be recorded as:

A) a debit to Cash of $19.5 million and a credit to Treasury Stock of $19.5 million.
B) a debit to Cash of $13.5 million, a debit to Additional Paid-in Capital of $6 million, a credit to Treasury Stock of $13.5 million, and a credit to Stockholders' Equity of $6 million.
C) a debit to Cash of $19.5 million, a credit to Treasury Stock of $13.5 million, and a credit to Additional Paid-in Capital of $6 million
D) a debit to Cash of $13.5 million, and a debit to Stockholders' Equity of $6 million, a credit to Treasury Stock