The Leverenz Company issued 10,000 shares of $10 par common stock. Sale price was $25 per share. Leverenz then: No other stock transactions occurred. Retained Earnings was $20,000 prior to these transactions. What is the combined effect of Transactions #1 through #3 on Retained Earnings and Total Stockholder's Equity, respectively?

Select one:

a.

$0, $22,500 decrease

b.

$0, $47,500 decrease

c.

$2,000 decrease, $22,500 decrease

d.

$2,000 decrease, $47,500 increase

e.

$2,000 increase, $22,500 decrease