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A corporation repurchased 8,000 of its own common shares, paying $8 per share. The shares were originally sold for an average of $5 per share.

A corporation repurchased 8,000 of its own common shares, paying $8 per share. The shares were originally sold for an average of $5 per share. Assuming this is the first share repurchase undertaken by the corporation, what will be the effect on retained earnings?

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