The Tornado Truck Body Company decides to repurchase 10,000 shares of its common stock on January 20. The stock has $1 par value, and the market value per share of common stock on January 20 is $8.75. What account(s) and amount(s) would be debited in the required journal entry?

1 Treasury stock $87,500

2 Treasury stock $10,000

3 Treasury stock $10,000 and additional paid-in capital-treasury stock $77,500

4 Cash $87,500

5 None of the above