On December 31, year 1, Pack Corp.?s board of directors
canceled 50,000 shares of $2.50 par value common stock held in
treasury at an average cost of $13 per share. Before recording the
cancellation of the treasury stock, Pack had the following balances
in its stockholders? equity accounts:

Common stock $540,000

Additional paid-in capital 750,000

Retained earnings 900,000

Treasury stock, at cost 650,000

In its balance sheet at December 31, year 1, Pack should report a
common stock balance of

$0
$250,000
$415,000
$540,000