BMG Inc. purchases 10,000 shares of its own previously issued 10 par ordinary shares for 290,000. Assuming

Question:

BMG Inc. purchases 10,000 shares of its own previously issued €10 par ordinary shares for €290,000. Assuming the shares are held in the treasury with intent to reissue, what effect does this transaction have on?
(a) Net income.
(b) Total assets.
(c) Retained earnings.
(d) Total equity.