In 2009, Winn, Inc. issued $1 par value common stock for $35 per share. No other common stock transactions occurred until July 31, 2011, when Winn acquired some of the issued shares for $30 per share and retired them. Which of the following statements correctly states an effect of this acquisition and retirement?
A. 2011 net income is decreased.
B. Additional paid-in capital is decreased.
C. 2011 net income is increased.
D. Retained earnings is increased.
Answer: B
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