21. Hamilton Co. needs additional shares of stock for employee compensation purposes and purchases 1,000 shares of stock from its shareholders for $25 per share. How is this transaction recorded, and how is the balance sheet affected?

Group of answer choices

A. Treasury Stock is increased by $25,000, which increases stockholders equity; Cash is decreased by $25,000, which decreases assets

B. Common Stock is decreased by $25,000, which decreases stockholders equity; Cash is decreased by $25,000, which decreases assets

C. Treasury Stock is increased by $25,000, which decreases stockholders equity; Cash is decreased by $25,000, which decreases assets

D. Additional Paid-in Capital is decreased by $25,000, which decreases stockholders equity; Cash is decreased by $25,000, which decreases assets