A Company Repurchased Shares of Its Common Stock for $19,000

Multiple Choice

A company repurchased shares of its common stock for $19,000.The stock was initially issued for $12,000 and had a $5,000 par value.Which of the following statements correctly describes the effects of the repurchase of company's common stock shares?

A) Net income increases by $7,000.
B) Net income decreases by $7,000.
C) Stockholders' equity increases $12,000.
D) Stockholders' equity decreases $19,000.