The Mercury Company has 100,000 shares of $10 par common stock outstanding. Management declares (not pays) a 10% stock dividend. The market value of a share of common stock was $15 immediately prior to the stock dividend declaration. The journal entry is:

	debit stock dividends distributable, $150,000; credit common stock, $150,000.
	debit retained earnings, $150,000; credit stock dividend distributable, $100,000; credit paid in capital in excess of par, $50,000
	debit retained earnings, $100,000; credit stock dividend distributable, $50,000; credit paid in capital in excess of par, $50,000.
	debit stock dividends distributable, $100,000; credit common stock, $100,000.

Fleek Dress Company previously purchased 8,000 shares of treasury stock on the open market for $8 per share. Later, the company resells 5,000 shares for $10 per share. What is the journal entry for the sale?

	debit cash, $50,000; credit treasury stock, $40,000; credit retained earnings, $10,000
	debit cash, $50,000; credit treasury stock, $10,000; credit additional paid-in capital, $40,000
	debit cash, $50,000; credit treasury stock, $50,000
	debit cash, $50,000; credit treasury stock, $40,000; credit additional paid-in capitaltreasury stock, $10,000

Jones Ventures Inc. purchased