1 (3 points) Several years ago, Rhyolite issued 200,000 of its $2 par value stock for a total of $1,600,000. This is the only time that it has sold stock. This year it purchased 2,000 shares of its own stock for $20 a share. As a result of acquiring treasury stock: its stockholders' equity decreases by $40,000. it will recognize a loss of $40,000. its common stock account decreases by $40,000. its retained earnings decrease by $40,000