The stockholders' equity section of the December 31, prior year, balance sheet is provided below:
Common Stock, $30 par, 20,000 shares issued and outstanding $600,000
Additional Paid-In Capital-Common Stock 240,000
Retained Earnings 700,000
Total Stockholders' Equity $1,540,000
Assume that all of the 20,000 shares of stock that were issued as of December 31, prior year, were issued for $42 per share. On March 1, current year, the company reacquired 4,000 shares of its common stock for $50 per share. Suppose the company reissued 1,000 shares of its treasury stock on June 1, current year, for $44 each. Which of the following is true regarding the entry required to record this transaction?
a. A debit to treasury stock is required for $44,000.
b. A credit to retained earnings is required for $6,000.
c. A debit to additional paid-in capital—treasury stock is required for $6,000.
d. A credit to treasury stock is required for $50,000.