FX Services reported the following as of December 31, 2022:Cash dividends payable $ 25,000Treasury stock 650,000Paid-in capitalshare repurchase 25,000Common stock and other paid-in capital accounts 4,500,000Retained earnings 3,500,000During 2023, half of the treasury stock was resold for $250,000; net income was $650,000; cash dividends declared were $1,550,000; and stock dividends declared were $550,000.The 2023 sale of half of the treasury stock would: (Hint: Write the entire journal entry on a piece of scratch paper, then look to see if one of your debits or credits reduces or increases the account balances in any of the ways shown below):

Reduce retained earnings by $75,000

Increase total shareholders' equity by $325,000

Reduce retained earnings by $50,000

Reduce income before tax by $75,000