On December 31, 2017, Rebel Corporation's Balance Sheet Reported the Following

Essay

On December 31, 2017, Rebel Corporation's balance sheet reported the following. $\begin{array}{|l|r|}\hline\text { Common stock, } \$ 1 \text { par } & \$ 1,000,000 \\\hline \text { Paid-in capital-excess of par } & 4,000,000 \\\hline \text { Retained earnings } & 5,280,000 \\\hline \text { Treasury stock }(20,000 \text { shares at cost) } & (625,000) \\\hline\end{array}$ During 2018, Rebel decided to discontinue accounting for share buybacks as treasury shares.
Instead, the shares will be treated as having been retired.
Required:
Prepare the appropriate journal entry to effect this change.