Bay Coffee Corp has been in operation for 10 years. On June 1, their Balance sheet showed an equity section as follows:

Contributed Capital:

Common Shares, unlimited shares authorized

10,000 shares authorized and outstanding $ 24,000

Total Contributed Capital $ 24,000

Retained Earnings 11,600

Total Equity $ 35,600

The owners of the company decide to buy back 2,000 shares for $3.00 per share. What is the effect on Retained Earnings?

	a.	Increases Retained Earnings by $10,000
	b.	Decreases Retained Earnings by $1,200
	c.	Increases Retained Earnings by $1,200
	d.	Decreases Retained Earnings by $10,000
	e.	None.