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What the effect of the common share retirement is

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Problem 1: There are currently 400,000 no par value common shares of BS Ltd reflected in the share capital account at a total value of $8,000,000. A further 200,000 common shares are issued at $23 per share. Subsequently, BS Ltd. purchased for retirement 100,000 common shares at $22 per share. The effect of the common share retirement is :

A. $2,000,000 reduction of share capital

B. 200,000 charge to retained earnings

C. $100,000 charge to contributed capital - retirement

D. $100,000 charge to retained earnings

Reference no: EM132726803

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