Joe Dumars Company has outstanding $40,000$ shares of $$5$ par common stock which had been issued at $$30$ per share. Joe Dumars

then entered into the following transactions.

Purchased $5,000$ treasury shares at $$45$ per share.

Resold $2,000$ of the treasury shares at $$49$ per share.

Resold $500$ of the treasury shares at $$40$ per share.

Indicate the effect each of the three transactions has on the financial statement categories listed in the table below, assuming Joe

Dumars Company uses the cost method.

Here are the labels for all the problems:

No effect

Increase

Decrease