Baria Inc Is Reacquiring 10,000 Common Shares

Multiple Choice

Baria Inc. is reacquiring 10,000 common shares. The price is $5.00/share and the average price is $5.10. Assuming that there is a contributed surplus balance of $5,000, which accounts will be affected by the transaction?

A) Common shares, Contributed Surplus, Retained Earnings and Cash
B) Common shares, Contributed Surplus and Cash
C) Common shares, Retained Earnings and Cash
D) Common shares and Cash