Rick Co Purchases 7,000 Shares of Its Own $2 Par Value

Rick Co. purchases 7,000 shares of its own $2 par value common stock for $160 per share. Which of the following is the correct journal entry to record this transaction?

A) Debit Common Stock-$2 Par Value $2,240,000 and credit Cash $2,240,000.
B) Debit Cash $2,240,000, and credit Paid-In Capital in Excess of Par-Common $2,240,000.
C) Debit Cash $2,240,000 and credit Treasury Stock-Common $2,240,000.
D) Debit Treasury Stock-Common $1,120,000 and credit Cash $1,120,000.