USE THE FOLLOWING FACTS TO ANSWER THE NEXT TWO QUESTIONS:

FACTS:

Equity section BEFORE repurchase of shares:

	BEFORE REPURCHASE	BEFORE REPURCHASE
# Common Shares	854,000	$1,281,000
Par Value Per Share	$1.50
Paid in Capital in Excess of PV		$3,900,000
Paid in Capital Share Repurchases		$38,000
Retained Earnings		$2,000,000
TOTAL STOCKHOLDER'S EQUITY		$7,219,000

ADDITIONAL INFORMATION:

# Shares reacquired	122,000 shares
Reacquired for per share	$10.00
ASSUME THE SHARES ARE RETIRED.

1. Consider the journal entry to repurchase the shares. What is the TOTAL DOLLAR NET IMPACT on stockholder's equity?

2. The above impact on equity was a (an):

Group of answer choices

increase

decrease

no impact

3. What is the amount of the CREDIT (if any) to the Paid in Capital Shares Repurchases account?