Sassycat, Inc

Sassycat, Inc. has a $9,000 credit balance in Paid-In Capital - Treasury Stock. It sells 4,500 shares of treasury stock, which the company reacquired at $35/share for $29/share. The journal entry to record this sale is:

A) debit Cash $130,500, debit Paid-In Capital - Treasury Stock $27,000, credit Treasury Stock $157,500.
B) debit Cash $157,500, credit Treasury Stock $157,500.
C) debit Cash $157,500, credit Paid-In Capital - Treasury Stock $27,000, credit Treasury Stock $130,500.
D) debit Cash $130,500, debit Paid-In Capital - Treasury Stock $9,000, debit Retained Earnings $18,000, credit Treasury Stock $157,500.