Cali Corp uses the cost method to account for repurchases of treasury stock. Cali Corp repurchased 5,000 shares of its common stock from a key shareholder at $30 per share. This particular shareholder had initiated a lawsuit against Cali Corp. A settlement of this lawsuit was included in the repurchase agreement. Cali Corp does not have an established market price. It repurchased shares last year at $20 per share. Corp has increased performance each year for the past couple years in terms of operating cash flow and earnings. Net income last year was $1 per share. This year it was $2 per share. Prepare the journal entry required for reacquisition of shares.