Choose the option that represents the effect on the specific component of the financial statements of the following transactions. The company uses the cost method for Treasury Stock.

You may use these more than once or not at all.

	Retained earnings	Total Shareholder Equity
a.	increase	increase
b.	decrease	decrease
c.	no effect	no effect
d.	decrease	no effect
e.	no effect	decrease
f.	no effect	increase

-a.b.c.d.e.f.	Company declares a cash dividend of $1.25 per share of common stock.
-a.b.c.d.e.f.	The company declares a 2-for-1 stock split.
-a.b.c.d.e.f.	Company purchases 1,000 shares of it's own common stock from shareholders for more than the original issue price.
-a.b.c.d.e.f.	Company issues a stock dividend (5% on common stock). Nothing was recorded previously with regards to the stock dividend.
-a.b.c.d.e.f.	Company pays a cash dividend declared in a prior period.

a.	a
b.	b
c.	c
d.	d
e.	e
f.	f