A corporation reacquires and retires 10,000 of its common shares for $450,000. These shares were originally issued

Question:

A corporation reacquires and retires 10,000 of its common shares for $450,000. These shares were originally issued for $500,000.
(a) What effect does this transac- tion have on revenue or expense of the period?
(b) What effect does this transaction have on shareholders' equity?

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