Question: In 2010, Fogg, Inc. issued $10 par value common stock for $25 per share. No other common stock transactions occurred until March 31, 2012, when

In 2010, Fogg, Inc. issued $10 par value common stock for $25 per share. No other common stock transactions occurred until March 31, 2012, when Fogg acquired some of the issued shares for $20 per share and retired them. Which of the following statements correctly states an effect of this acquisition and retirement?

a. 2012 net income is decreased.

b. 2012 net income is increased.

c. Additional paid-in capital is decreased.

d. Retained earnings is increased.

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