A company repurchased shares of its common stock for $21,300. The stock was initially issued for $17,750 and had a $7,300 par value. Which of the following statements correctly describes the effects of the repurchase of company’s common stock shares?

• Net income increases by $10,450.

• Stockholders' equity decreases $21,300.

• Net income decreases by $10,450.

• Stockholders' equity increases $17,750.

Answer rating: 100% (QA)

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