In 2016, Winn, Inc., issued $1 par common stock for $35 per share. No other common stock transactions occurred until July 31, 2018, when Winn acquired some of the issued shares for $30 per share and retired them. Which of the following statements correctly states an effect of this acquisition and retirement?

• 2018 net income is decreased.

• Additional paid-in capital is decreased.

• 2018 net income is increased.

• Retained earnings is increased.