On December 10, 2010, Smitty Corporation reacquired 2,000 shares of its own \(\$ 5\) par value common stock at a price of \(\$ 60\) per share. In 2011,500 of the treasury shares are reissued at a price of \(\$ 70\) per share. Which of the following statements is correct?

a. The treasury stock purchased is recorded at cost and is shown in Smitty's December 31, 2010, balance sheet as an asset.

b. The two treasury stock transactions result in an overall net reduction in Smitty's stockholders' equity of \(\$ 85,000\).

c. Smitty recognizes a gain of \(\$ 10\) per share on the reissuance of the 500 treasury shares in 2011.

d. Smitty's stockholders' equity was increased by \(\$ 110,000\) when the treasury stock was acquired.