The balance sheet for Pie Crust, Inc., is shown here in market value terms. There are 15,000 shares of stock outstanding.

Market Value Balance Sheet

	Cash	$140,000
	Fixed assets	470,000	Equity	$610,000
	Total	$610,000	Total	$610,000

In lieu of a dividend of $1.20, the company has announced it is going to repurchase $18,000 worth of stock instead of paying a dividend.

Requirement 1:

What effect will this transaction have on the equity of the firm? (Do not round intermediate calculations. Input the amount as positive value.)

Will shareholders