There are currently 400,000 no par value common shares of BS Ltd reflected in the share capital account at a total value of $8,000,000. A further 200,000 common shares are issued at$23 per share. Subsequently, BS Ltd. purchased for retirement 100,000 common shares at $22 per share. The effect of the common share retirement is : (4 marks)

A.

$2,000,000 reduction of share capital

B.

200,000 charge to retained earnings

C.

$100,000 charge to contributed capital - retirement

D.

$100,000 charge to retained earnings