Analyzing Common Stock Reacquisition Methods Lakers Inc. reacquired a number of its own shares in one transaction in December. (Assume no previous reacquisitions of stock.) Lakers Inc. could account for the reacquisition transaction using two different methods, illustrated as Option One and Option Two. Stockholders' Equity Section at December 31 Common stock, $1 par (1) Paid-in capital in excess of par Retained earnings Treasury stock (2) Total stockholders' equity (1) Common stock 190,000 shares authorized (2) Treasury stock, 3,800 shares Required Option One Option Two $15,200 $19,000 228,000 285,000 58,900 Date Dec. 31 a. Identify which accounting method the company used in Option One to account for the reacquisition of common stock-the direct retirement method or the treasury stock method. Direct Retirement Method = Type here to search $302,100 Recreate the accounting entry to record the reacquisition of common stock. 66,500 (68,400) $302,100 Account Name Dr. 0 0 Cr. 0x 0x A & EN (3 Rain tomorrow ENG 8:27 PM 10/26/2023

fiustrated as Option Cre and Option Two. (1) Corvinon stock 190,000 shares authoriped ca treasury stock a inod shares Required fiustrated as Option Cre and Option Two. (1) Corvinon stock 190,000 shares authoriped ca treasury stock a inod shares Required