Assume Dubello Company uses the cost method for any treasury stock transactions. Dubello Company has the following information about it's common stock on January 1 of the current year: Common Stock, $4 par; 200,000 shares authorized, 80,000 shares issued On January 2, Dubello purchases 4,000 shares of it's own stock for $30 per share. On January 3, Dubello declares a cash dividend on common stock of 50 cents per share. What is the balance in the common stock account after the purchases on January 2? By what amount will retained earnings decrease on January 3 as a result of the dividend? Consider the following transactions for Lavigne Corp. Assume Lavigne Corp. uses the cost method for any treasury stock transactions. For each of the following transactions indicate the effect of the transaction on 1) Retained earnings, and 2) Total shareholders equity. I is for increase, D is for decrease, and NE means no effect on RE and no effect on total equity. For example, the choice NE, I means no effect on retained earnings, increase to total equity. Remember that items that effect retained earnings also effect shareholders equity, as retained earnings is an equity account. (However, if there is another equity account with an offsetting change, it is possible to have an effect on RE with no effect on total equity.) a. I, I b. D, D c. NE, NE d. NE, I e. NE, D f. D, NE