Lava Lake Inc. bottles and distributes spring water. On February 11 of the current year, Lava Lake reacquired 40,300 shares of its common stock at $42 per share. On April 30, Lava Lake Inc. sold 32,400 of the reacquired shares at $49 per share. On August 22, Lava Lake Inc. sold 7,900 shares at $41 per share.

Required:

A.	Journalize the transactions of February 11, April 30, and August 22. Refer to the Chart of Accounts for exact wording of account titles.
B.	What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year?
C.	For what reasons might Lava Lake have purchased the treasury stock?