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Cyan Corp. issued 20,000 shares of 5 par ordinary share at 10 per share. On December 31, 20x1, Cyan's retained earnings were 300,000. In March

Cyan Corp. issued 20,000 shares of 5 par ordinary share at 10 per share. On December 31, 20x1, Cyan's retained earnings were 300,000. In March 20x2, Cyan reacquired 5,000 shares of its common stock at 20 per share. In June 20x2, Cyan sold 1,000 of these shares to its corporate officers for 25 per share. Cyan uses the cost method to record treasury stock. Profit for the year ended December 31, 20x2, was 60,000. At December 31, 20x2, what amount should Cyan report as retained earnings? show the solution and explain.

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