On January 1, 2010, Russell reacquires 8,000 of the outstanding shares of its own common stock for

Question:

On January 1, 2010, Russell reacquires 8,000 of the outstanding shares of its own common stock for $24 per share. None of these shares belonged to Chapman. How does this transaction affect the parent company’s Additional Paid-In Capital account? LO4

a. Has no effect on it.

b. Decreases it by $22,000.

c. Decreases it by $30,500.

d. Decreases it by $33,000.

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