100 shares of treasury stock were purchased at $60/share.

60 of these shares were sold six months later at $64/share.

The other 40 shares were sold eight months later at $53/share.

Which of the following would have occurred?

A. First entry: cash increased $6,000.

B. Second entry: treasury stock increased $3,600.

C. Second entry: cash decreased $3,840.

D. Third entry: addl. paid in capital increased $240.

E. Third entry: retained earnings decreased $40.