Answer:
The correct answer is $152,949.
Explanation:
According to the scenario, the given data are as follows:
Reacquired shares = 166,326
Per share price = $22
So, we can calculate the retained earning decline by using following formula:
Retained earning decline = Cost of Treasury shares - Sales price - Paid in Capital from stock
Where, Cost of treasury shares = 48,987 × $22 = $1,077,714
Now Sales Price = 48,987 × $15 = $734,805
and Paid in Capital from stock = 37,992 × ( $27 - $22) = $189,960
By putting the value in the formula, we get:
Retained earning decline = $1,077,714 - $734,805 - $189,960
= $152,949
