What net effect did the repurchase of common stock

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Question 1: Chainmail Mall had 100,000 outstanding shares of common stock. On June 16, 2018, Chainmail repurchased 20,000 shares of its own stock at $30 per share. On July 23, 2018, Chainmail resold 10,000 shares at $28 per share. What net effect did the repurchase and the resell of common stock have on the accounting equation?

Option 1: Increase in assets and decrease in stockholders' equity

Option 2: Decrease in assets and increase in stockholders' equity

Option 3: Increase in assets and increase in stockholders' equity

Option 4: Decrease in assets and decrease in stockholders' equity

Reference no: EM132578963

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