The records of Maverick Inc. showed that it had 200,000 shares ($1,000,000) and 240,000 shares ($1,230,000) on January 1 and December 31, 2020 respectively. On July 1, Maverick repurchased 20,000 shares of its own shares for cancellation. Maverick paid $4.50/share and recorded a credit to contributed surplus of $10,000. On September 30, Maverick issued new shares. Which of the following statements is correct regarding the book value of the shares repurchased.

A 0.5

B 4.5

C 5.0

D 5.125

E 5.50