Problem:
The stockholder's equity section of Peter Corporation's balance sheet at December 31, 2005 was as follows:
Common stock ($10 par value); authorized 1,000,000
Shares, issued and outstanding 900,000 shares $9,000,000
Additional paid-in capital 2,700,000
Retained earnings 1,300,000
Total stockholders' equity $14,000,000
On January 2, 2006 Peter purchased and retired 100,000 shares of its stock for $1,800,000.
Required:
What was the balance in additional paid in capital and in retained earnings immediately after retirement of the shares?