On March 4 of the current year, Barefoot Bay, Inc. reacquired 5,000 shares of its common stock at $88 per share. On August 7, Barefoot Bay sold 3,500 of the reacquired shares at $110 per share. The remaining 1,500 shares were sold at $86 per share on November 29.

a. Journalize the transactions of March 4, August 7, and November 29.

b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year?

c. Why might Barefoot Bay, Inc. have purchased the treasury stock?