LeeWhy Corporation had 100,000 no par value common shares authorized, issued and outstanding on December 31, 2019. Retained earnings of $250,000 were also reported as at that date. It had reported 54,000 shares outstanding on January 1, 2019 with a contributed amount of $5,184,000. On June 1, it issued an additional 46,000 shares at $85 each.

On January 1, 2020, the company paid $98 per share to acquire shares and immediately cancelled them. The total shareholders equity reduced by $196,000 as a result of this transaction.

How many shares were acquired and by what amount and how would be this transaction be recorded to the Common Share Capital account? [Example: xxx shares; $yyy credited]

Select one:

a.

2,000 shares; Debit $196,000

b.

2,155 shares; Credit $195,976

c.

2,000 shares; Debit $181,880

d.

2,000 shares; Debit $195,976

e.

none of the above answers