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	$16.00
ASSUME THE SHARES ARE RETIRED.

1. What is the amount of the DEBIT (if any) to the Retained Earnings account?

2. What is the TOTAL balance in stockholder's equity AFTER THE REPURCHASE?