Cyan Corp. issued 20,000 shares of $5 par common stock at $10 per share. On December 31, 2005, Cyan’s retained earnings were $300,000. In March 2006, Cyan reacquired 5,000 shares of its common stock at $20 per share. In June 2006, Cyan sold 1,000 of these shares to its corporate officers for $25 per share. Cyan uses the cost method to record treasury stock. Net income for the year ended December 31, 2006, was $60,000. At December 31, 2006, what amount should Cyan report as retained earnings?
- $360,000
- $365,000
- $375,000
- $380,000