Kryer Ltd Has 50,000 No Par Value Common Shares Authorized, Issued

Multiple Choice

Kryer Ltd. has 50,000 no par value common shares authorized, issued, and outstanding. All 50,000 shares were issued at $ 4 per share. Retained earnings are $ 60,000. If 5,000 common shares were reacquired at $ 3 and cancelled,

A) shareholders' equity would decrease $ 75,000.
B) contributed surplus would increase $ 5,000.
C) contributed surplus would decrease $ 5,000.
D) retained earnings would decrease $ 15,000.