The fair value of Willow Company's common stock was $57 per share at December 31, 2013 and $63 per share at December 31, 2014. Willow acquired 7,000 shares of its own common stock at $60 per share on March 10, 2014, and sold 5,000 of these shares at $65 per share on September 25, 2014. Willow Company uses the cost method to account for treasury stock. The journal entry to record the sale of the treasury stock should credit:
a) Treasury Stock for $300,000 and Retained Earnings for $25,000
b) Treasury Stock for $285,000 and Retained Earnings for $40,000
c) Treasury Stock for $300,000and Paid-in Capital from Treasury Stock for $25,000
d) Treasury Stock for $325,000