Use the Following Information for Questions

Multiple Choice

Use the following information for questions.
When Oslo Ltd. was organized last year, they issued 100,000 no par value common shares for $ 1,200,000. Earlier this year, the corporation purchased 4,000 of these shares at $ 15 per share, to be held in the treasury, and three months later, sold 2,000 treasury shares at $ 19 per share. There were no other treasury share transactions.
-London Corporation has 50,000 no par value common shares authorized, issued and outstanding. All 50,000 shares were issued at $ 40 per share. Retained earnings are $ 40,000. If 3,000 of these shares were reacquired at $ 50 and were held as treasury shares,

A) shareholders' equity would increase by $ 150,000.
B) contributed surplus would decrease by at least $ 30,000.
C) shareholders' equity would decrease by $ 150,000.
D) common shares would increase by $ 150,000.