Wenger Company issues a one-year interest-bearing note in return for inventory purchased from Ranieri Company. The note has stated rate of 7% and face value of $840,000. Interest is paid in every 3 months. After the first interest payment is made, Wenger and Ranieri agree to settle the note. Wenger gives Ranieri securities with a fair value of $828,000 for the settlement. The carrying value of the securities is equal to their fair value. Remaining total interest expense until maturity was $63,200 on the day of settlement. Ignoring income taxes, what is the effect of this settlement on Wengers stockholders equity?

• Decrease of $51,200

• Decrease of $26,200

• Decrease of $7,100

• No effect

• Increase of $12,000