accounting---Treasury stock

The stockholders equity category of Bradford Company's balance sheet on January 1, 2007, appears as follows:

-Common stock, $10 par, 10,000 shares issued and outstanding----------------------------------------------------$100,000

-Additional paid-in-capital-----------------------------------------$50,000

-Retained earnings-------------------------------------------------$80,000

The following transactions occurred during 2007:

a. Reacquired 2,000 shares of common stock at $20 per shares on July 1. b. Reacquired 400 shares of common stock at $18 per share on August 1.

Required:

1. Determine the effect on the accounting equation of the events.
2. Assume the company resold the shares of treasury stock at per shares on October 1. Did the company benefit from the treasury stock transaction? If so, where is the "gain" presented on the balance sheet?

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