Wild horse, Inc. issues 124000 shares at $10 per share in January later that year the company repurchases 11160 of the shares at $9 per share. The effect of this is.

1. an increase to the contributed surplus as a count of $11160.

2. I decrease to the total shareholders equity of $111600.

3. I decreased to the share capital account of one $100440.

4. an increase in retained earnings by $11160