When Oslo Ltd. was organized last year, they issued 100,000 no par value common shares for $1,200,000. Earlier this year, the corporation purchased 4,000 of these shares at $15 per share, to be held in the treasury, and three months later, sold 2,000 treasury shares at $19 per share. There were no other treasury share transactions. If, instead of holding the 4,000 shares as treasury shares,

Oslo had decided to cancel them, Oslo should debit:

Contributed Surplus for $60,000.

Common Shares for $48,000 and Retained Earnings for $12,000.

Contributed Surplus for $48,000 and Retained Earnings for $12,000.

Common Shares for $60,000.