QUESTION 32

1. Rich Products Inc. issued 50,000 shares of common stock with a par value of $1 per share. On July 1, the company bought back 1,500 shares from investors for $70 per share. On August 1, the company reissued the 1,500 shares at a price of $75 per share. Rich Products should record which of the following entries:

   	a.	Dr. Treasury Stock $105,000 Cr. Cash $105,000
   	b.	Dr. Cash $105,000 Dr. Additional Paid-in Capital $7,500 Cr. Treasury Stock $112,500
   	c.	Dr. Treasury Stock $1,500 Dr. Additional Paid-In Capital $103,500 Cr. Cash $105,000
   	d.	Dr. Cash $112,500 Cr. Treasury Stock $105,000 Cr. Additional Paid-in Capital $7,500