Satchel Inc. purchases 10,000 shares of its own previously issued $10 par common stock for $290,000. Assuming the shares are held in the treasury with the intent to reissue, what effect does this transaction have on total stockholder's equity?

		Decreases total stockholders' equity
		Increases total stockholders' equity
		Has no effect on total stockholders' equity
		Increases stockholders' equity but only the preferred portion.

1. Satchel Inc. purchases 10,000 shares of its own previously issued $10 par common stock for $290,000. Assuming the shares are held in the treasury with the intent to reissue, what effect does this transaction have on net income?

   		Dilutes net income
   		Decreases net income
   		Increases net income
   		No effect on net income