1. In 2018, Brown, Inc., issued $1 par common stock for $28 per share. No other common stock transactions occurred until August 31, 2020, when Brown repurchased some of its issued shares on the open market $23 per share. Brown retired the shares at the time of repurchase. Which of the following correctly describes the effect of the share repurchase and retirement? Group of answer choices

a. Additional paid-in capital is decreased.

b. Retained earnings is increased.

c. 2020 net income is decreased.

d. 2020 net income is increased.