Brown Corp

Multiple Choice

Brown Corp. recently purchased 2,000 shares of its own $0.50 par value common stock in the market for $32.50 per share. Brown uses the cost method to account for treasury stock. Based on this transaction, Brown's

A) common stock account decreased by $1,000.
B) treasury stock account increased by $1,000.
C) additional paid-in on capital on common stock account increased by $64,000.
D) treasury stock increased by $65,000.
E) additional paid-in capital on treasury stock account increased by $64,000.