Q3) Shortwave Corp. issued 300,000 shares of $0.01 par common stock for in 2016 for $3,600,000. During 2019, Shortwave paid $15 per share to repurchase 25,000 shares of its own common stock. Three months later Shortwave resold all 25,000 shares at $19 per share. Prior to these transactions there was no balance in the APIC - Treasury Stock account. Shortwave uses the cost method to record treasury stock transactions. To record the resale of the 25,000 treasury shares, Shortwave should credit

Treasury Stock for $475,000.

Treasury Stock for $250 and Additional Paid-in Capital from Treasury Stock for $474,750.

Treasury Stock for $375,000 and Additional Paid-in Capital from Treasury Stock for $100,000.

None of the above.

Q4)Consider the same scenario as in Question #3, except that now assume the resale price of the 25,000 treasury shares was $10 per share (instead of $19, as in #3). To record the resale of the treasury shares, Shortwave should debit cash for $250,000 and

credit Treasury Stock for $250,000

debit Retained Earnings for $125,000 and credit Treasury Stock for $375,000

debit Additional Paid-in Capital-Treasury Stock for $125,000 and credit Treasury Stock for $375,000

debit Additional Paid-in Capital in Excess of Par for $125,000 and credit Treasury Stock for $375,000

Q5) Consider the same scenario as in Question #3, except now assume the resale price of the 25,000 treasury shares was $10 per share (instead of $19, as in #3). Further assume that there was a $500,000 credit balance in the Additional Paid-in Capital--Treasury Stock account just prior to the resale. To record the resale of the treasury shares, Shortwave should debit cash for $250,000 and

credit Treasury Stock for $250,000

debit Retained Earnings for $125,000 and credit Treasury Stock for $375,000

debit Additional Paid-in Capital-Treasury Stock for $125,000 and credit Treasury Stock for $375,000

debit Additional Paid-in Capital in Excess of Par for $125,000 and credit Treasury Stock for $375,000