Stocks And Transactions case study

Write a response to the following scenario:

Chen, Inc. purchases 1,000 shares of its own previously issued per for $12,000. Assuming the shares are held in the treasury, what effect does this transaction have on (a) net income, (b) , (c) in capital, and (d) total stockholders’ equity?

The in the above question was resold by Chen, Inc. for $15,000. What effect does this transaction have on (a) net income, (b) total assets, (c) total paid-in capital, and (d) total stockholders’ equity?