What effect will the acquisition of treasury stock have on stockholders' equity and earnings per share, respectively?

What effect will the acquisition of treasury stock have on stockholders' equity and earnings per share, respectively?

What effect will the acquisition of treasury stock have on stockholders' equity and earnings per share, respectively?






a. Decrease and no effect
b. Increase and no effect
c. Decrease and increase
d. Increase and decrease





Answer: C