the answer is E. the correct journal entry is debit cash 22000, credit treasury stock 19000, and credit Paid in capital 3000.

However, i need help understanding how they got the number 3000 for Paid in Capital qnd how they got 19000 in treasury stock. thanks!

Part 2 Use the following information for the next 5 questions. The Reagan Corporation has 50,000 shares of $10 par value common stock outstanding that were originally issued for $17 per share. On July 17 , Reagan declared a 15% stock dividend to stockholders. Market value of the stock was $20. On July 20 , Regan purchased 2,000 shares of treasury stock for $19 per share and later sold 1,000 of the treasury shares for $22 a share on November 2 . The entry to record the sale of the treasury shares on November 2 would not include a A. Credit to Treasury Stock, $17,000 B. Debit to Cash, $22,000. C. Credit to Paid-in-Capital, Treasury Stock, $3,000. D. Credit to Retained Earnings, $2,000. E. Both A and D