Anthem Inc. issues 200,000 shares of stock with a par value of $0.05 for $154 per share. Three years later, it repurchases these shares for $84 per share. Anthem records the repurchase in which of the following ways?
A. Debit Stockholders' Equity for $30.80 million, credit Additional Paid-in Capital for $16.80 million and credit Cash for $16.80 million.
B. Debit Common Stock for $10,000, debit Additional Paid-in Capital for $16,790,000 and credit Cash for $16.80 million.
C. Debit Treasury Stock for $16.80 million and credit Cash for $16.80 million.
D. Debit Common Stock for $10,000, debit Additional Paid-in Capital for $30,790,000 and credit Cash for $30.80 million.
Answer: C
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