On January 1,2014,Arlington Industries Repurchased 10,000 Shares of Its $1

Multiple Choice

On January 1,2014,Arlington Industries repurchased 10,000 shares of its $1 par value common stock on the market when it was trading for $15 per share.On March 1,2104,Elliott reissued 5,000 shares of the treasury stock by selling it for $20 per share.On June 1,2104,Elliott reissued the remaining 5,000 shares treasury stock by selling it for $8 per share.How would the company record the June 1 transaction?

A) Debit Cash for $35,000 and credit Treasury Stock,Common for $35,000.
B) Debit Cash for $40,000 and credit Treasury Stock,Common for $40,000.
C) Debit Cash for $60,000 and credit Treasury Stock,Common for $60,000.
D) Debit Cash for $40,000,debit Paid-In Capital,Treasury Stock for $35,000,and credit Treasury Stock,Common for $75,000.
E) Debit Cash for $40,000,debit Paid-In Capital,Treasury Stock for $25,000,debit Retained Earnings for $10,000 and credit Treasury Stock,Common for $75,000.