Which ways the central records the repurchase

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Problem 1: Central Concrete Inc. issues 200,000 no-par value shares for $150 per share in 2017. Three years later, it repurchases 30,000 of these shares for $80 per share. Central records the repurchase in which of the following ways?

Option 1: Debit Cash for $4.5 million, credit Common shares for $2.4 million and credit Contributed Surplus for $2.1 million.

Option 2: Debit Common Shares for $4.5, debit Contributed Surplus for $2.4 and credit Cash for $2.1 million.

Option 3: Debit Common Shares for $2.4 million, debit Cash for $2.1 million and credit Contributed Capital for $4.5 million.

Option 4: Debit Common Shares for $4.5 million and credit Cash for $2.4 million and Contributed Surplus for $2.1 million.

Reference no: EM132964359

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