The equity section of LL, on 1/1/20 was as follows: Common Stock $200,000 PICEP 600,000 Retained Earnings 900,000

On 1/2/20 LL re-purchased 4,000 of its own shares at $60 and re-issued 1,000 of those shares at $55 on 2/1/20.

How is the re-issue of the 1,000 shares of treasury stock on 2/1/20 treated? a) A loss on sale of treasury stock of $5,000 is recorded. b) Retained earnings is debited for $5,000. c) Paid in capital from treasury stock is debited for $5,000, resulting in a debit balance in that account. d) Common stock is debited for $5,000.