In Year 1, Rona Corp. issued 5,000 shares of $10 par value common

stock for $100 per share. In Year 7, Rona reacquired 2,000 shares at $150 per share from the estate of one of its deceased officers and immediately canceled these 2,000 shares. Rona uses the cost method in accounting for its treasury stock transactions. In connection with the retirement of these 2,000 shares, Rona should debit

Additional
Retained
Paid-in Capital

Earnings

$20,000
$280,000

$100,000
$180,000

$180,000
$100,000

$280,000
$

Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"