Melrose Inc

Multiple Choice

Melrose Inc.buys back 300,000 shares of its stock from investors at $6.50 a share.Two years later,it reissues this stock for $6.00 a share.The stock reissue would be recorded with a debit to Cash for:

A) $1.8 million, a debit to Additional Paid-in Capital for $150,000, and a credit to Treasury Stock for $1.95 million.
B) $1.95 million, a credit to Treasury Stock for $1.8 million, and a credit to Additional Paid-in Capital for $150,000.
C) $1.95 million and a credit to Treasury Stock for $1.95 million.
D) $1.8 million and a credit to Treasury Stock for $1.8 million.