ABC Company reported the following shareholders' equity balances on 1/1/X1:

Capital Stock: par $100,000

Additional Paid in Capital $200,000

Retained Earnings $200,000

During year X1, ABC earned $50,000 of income and paid $10,000 of dividends. On 1/2/X2 ABC purchased 1,000 of its 10,000 outstanding shares for $45,000. After this stock purchase, ABC should report which of the following amounts for shareholders' equity?

a.$495,000

b.$505,000

c.$540,000

d.$550,000

e.None of the Above