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The following information is available concerning Lahm Corporation's Treasury Stock on January 1, 2013:

Treasury Stock, 100,000 shares purchased at $10 per share $1,000,000

Additional Paid-in Capital - Treasury Stock (APIC-TC) 300,000

Lahm reissues all 100,000 shares of treasury stock at $6 per share on February 10,2013. Which of the following statements about the entry on February 10, 2013 are correct?

(1) It increases stockholder's equity by $1,000,000

(2) It increases stockholder's equity by $600,000

(3) It does not affect retained earnings

(4) It reduces treasury stock by $1,000,000

Account Title	Debit	Credit

multiple choice : which 2 are answers.