Cross Corp. had outstanding 2,000 shares of 11% preferred stock, $50 par. On August 8, 1992, Cross redeemed and retired 25% of these shares for $22,500. On that date, Cross' additional paid-in capital from preferred stock totaled $30,000. To record this transaction, Cross should debit (credit) its capital accounts as follows: Preferred stock Additional paid-in capital Retained earnings $25,000 $7,500 ($10,000) $25,000 ($2,500) $25,000 ($2,500) O $22,500