Reese Co. issued 10,000 shares of common stock for $20 cash per share on January 1st. Then, on March 31st it repurchased 5,000 of these common shares to hold as treasury stock at $25 per share. The net effect on the financial statements from both transactions includes:

Select one:

a. Liabilities increases by $75,000

b. Stockholder's equity increases by $75,000

c. Stockholder's equity decreases by $200,000

d. Assets increase by $200,000