Carter Co. began its business last year and issued 10,000 shares of commons stock at $4 per share. The par value of the stock is $1 per share. During January of the current year, Carter bought back 500 shares at $6 per share, which were reported by Carter as treasury stock. The treasury stock shares were reissued later in the current year at $10 per share. Carter used the cost method to account for its treasury stock transactions. What amount should Carter report as paid-in capital related to its treasury stock transactions on its balance sheet for the current year?

Select one:

a. $5,000

b. $4,500

c. $20,000

d. $3,500

e. none of the solutions shown

f. $1,500

g. $2,000