Neill Company purchases 80 percent of the common stock of Stamford Company on January 1, 2013, when Stamford has the following stockholders equity accounts:

Common stock40,000 shares outstanding	$	100,000
Additional paid-in capital		75,000
Retained earnings, 1/1/13		540,000
Total stockholders equity	$	715,000

To acquire this interest in Stamford, Neill pays a total of $592,000. The acquisition-date fair value of the 20 percent noncontrolling interest was $148,000. Any excess fair value was allocated to goodwill, which has not experienced any impairment.

On January 1, 2014, Stamford reports retained earnings of $620,000. Neill has accrued the increase in Stamfords retained earnings through application of the equity method.

On January 1, 2014, Stamford reacquires 8,000 of the outstanding shares of its own common stock for $24 per share. None of these shares belonged to Neill.

How does this transaction affect the parent companys Additional Paid-In Capital account?

Has no effect on it.Decreases it by $35,000.Decreases it by $55,000.Decreases it by $28,000.