USE THE FOLLOWING FACTS TO ANSWER THE NEXT TWO QUESTIONS:

FACTS:

Equity section BEFORE repurchase of shares:

	BEFORE REPURCHASE	BEFORE REPURCHASE
# Common Shares	320,000	$320,000
Par Value Per Share	$1.00
Paid in Capital in Excess of PV		$3,000,000
Paid in Capital Share Repurchases		$22,000
Retained Earnings		$2,000,000
TOTAL STOCKHOLDER'S EQUITY		$5,342,000

ADDITIONAL INFORMATION:

# Shares reacquired	64,000 shares
Reacquired for per share	$8.00
ASSUME THE SHARES ARE RETIRED.

PLEASE ROUND ALL PERCENTAGES (%'S) TO AT LEAST SIX DECIMALS WHEN MAKING YOUR COMPUTATIONS.

Q1:

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

The above impact on equity was a (an):

Group of answer choices

increase

decrease

zero impact

Q2:

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