In 2017, Hobbs Corp. acquired 15,000 shares of its own $1 par value common stock at $18 per share. In 2018, Hobbs issued 10,000 of these shares at $25 per share. Hobbs uses the cost method to account for its treasury stock transactions. What accounts and what amounts should Hobbs credit in 2018 to record the issuance of the 10,000 shares?

Treasury Additional Retained Common

Stock Paid-in Capital Earnings Stock

a. $180,000 $175,000

b. $180,000 $70,000

c. $240,000 $10,000

d. $170,000 $70,000 $10,000

Show all work and what formulas you use to calculate your answer.