(Answered) Cyan corp issued 20000 shares of 5 par common stock at 10

Accounting

Cyan Corp. issued 20,000 shares of $5 par common stock at $10 per share. OnDecember 31, year 1, Cyan's retained earnings were $300,000. In March year 2, Cyan reacquired 5,000 shares of its common stock at $20 per share. In June year 2, Cyan sold 1,000 of these shares to its corporate officers for $25 per share. Cyan uses the cost method to record treasury stock.

Net income for the year ended December 31, year 2, was $60,000. At December 31, year 2, what amount should Cyan report as retained earnings?

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