On December 31, 2016, Liquorice Treats Limited reported 40,000 common shares issued and a balance in the

Question:

On December 31, 2016, Liquorice Treats Limited reported 40,000 common shares issued and a balance in the Common Shares account of $250,000. On April 5, 2017, it reacquired 8,000 of these shares. This is the first time Liquorice Treats has reacquired any of its shares. Record the reacquisition of the shares assuming the company paid
(a) $45,000
(b) $60,000 to reacquire the shares.