Rondo Auto Acquired 3,500 of Its Own Shares at $32

Rondo Auto acquired 3,500 of its own shares at $32 per share.The shares are to be held in Treasury.The par value of Rondo Auto's common stock is $2.50 per share.If Rondo Auto were to resell all its treasury stock at $35 per share,what journal entry would Rondo Auto make?

A) $\begin{array}{lll}\text { Cash } & 122,500 & \\\text { Additional Paid-in Capital } & & 112,000 \\\text { Treasury Stock } && 110,500& \\\end{array}$

B) $\begin{array}{lccc}\text { Cash } & 122,500 & \\\text { Additional Paid-in Capital } & & 10,500 \\\text { Treasury Stock } & &112,000 \\\end{array}$

C) $\begin{array}{lccc}\text { Cash } & 122,500 & \\\text { Treasury Stock } & & 112,000 \\\text { Gain on Sale of Treasury Stock } && 10,500\\\end{array}$

D) $\begin{array}{lccc}\text { Cash } & 122,500 & \\\text { Additional Paid-in Capital } & & 103,250 \\\text { Treasury Stock } & &8,750 \\\quad \text { Gain on Sale of Treasury Stock } && 10,500 \\\end{array}$

E) $\begin{array}{lccc}\text { Cash } & 122,500 & \\\text { Common Stock } & & 8,750 \\\text { Treasury Stock } & &112,000 \\\text { Gain on Sale of Treasury Stock } && 1,750\end{array}$