Sanborn Company has outstanding 40,000 shares of $5 par value common stock which has been issued at $30 per share. 1. Purchased 5,000 treasury shares at $45 per share 2. Resold 500 of the treasury shares at $40 per share 3. Resold 2,000 of the treasury shares at $49 per share Use the transactions to indicate the effect on financial statement: I = Increase; D= Decrease; NE = No Effect Assetes Liabilities Stockholders Eq. Paid in Capital RE Net Income 1. 2. 3