In 2005, Seda Corp. acquired 6,000 shares of its $1 par value common stock at $36 per share. During 2006, Seda issued 3,000 of these shares at $50 per share. Seda uses the cost method to account for its treasury stock transactions. What accounts and amounts should Seda credit in 2006 to record the issuance of the 3,000 shares?

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Treasury stock

Additional paid-in capital

Retained earnings

Common stock

a.

$102,000

$42,000

$6,000

b.

$144,000

$6,000

c.

$108,000

$ 42,000

d.

$108,000

$42,000