Accounting Stocks and Transactions

Write a response to the following scenario in about 300-400 words:

Chen, Inc. purchases 1,000 shares of its own previously issued $5 per common stock for $12,000. Assuming the shares are held in the treasury, what effect does this transaction have on:

(a) Net Income
(b) Total assets
(c) Total paid-in capital
(d) Total stockholders’ equity?

The treasury stock purchased 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
(d) Total stockholders’ equity?

• Format your response consistent with APA guidelines.