Several Years Ago,Doran Corp

Multiple Choice

Several years ago,Doran Corp.issued 100,000 of its $2 par value stock for a total of $800,000.This is the only time that it has sold stock.This year it purchased 1,000 shares of its own stock for $10 a share.As a result of acquiring treasury stock:

A) its stockholders' equity decreases by $10,000.
B) it will recognize a loss of $2,000.
C) its common stock account decreases by $10,000.
D) its retained earnings decrease by $10,000.