Renoir Corporation Reacquired 40,000 Shares of Its $1 Par Common $$\begin{array} { | c | r | r | } \hline \text { Cash } & 40,000 & \\\hline \text { Treasury Stock } & & 40,000 \\\hline\end{array}$$

Renoir Corporation reacquired 40,000 shares of its $1 par common stock for $19 per share on July 1. On August 1 they sold 10,000 treasury shares for $22 per share. What is the necessary journal entry for the August transaction?

A) $$\begin{array} { | c | r | r | } \hline \text { Cash } & 40,000 & \\\hline \text { Treasury Stock } & & 40,000 \\\hline\end{array}$$
B) $$\begin{array} { | l | r | r | } \hline \text { Cash } & 760,000 & \\\hline \text { Treasury Stock } & & 540,000 \\\hline \begin{array} { l } \text { Addl. Paid-in Capital from Treasury Stock } \\\text { Transactions. }\end{array} & & 220,000\\\hline\end{array}$$
C) $$\begin{array} { | l | r | r | } \hline \text { Cash } & 220,000 & \\\hline \text { Treasury Stock } & & 190,000 \\\hline \text { Addl. Paid-in Capital from Treasury Stock } & & \\\text { Transactions. } & & 30,000 \\\hline\end{array}$$
D) $$\begin{array} { | c | r | r | } \hline \text { Cash } & 220,000 & \\\hline \text { Retained Earnings } & & 220,000 \\\hline\end{array}$$