A company repurchased shares of its common stock for $19,100. The stock was initially issued for $12,250 and had a $5,100 par value. Which of the following statements correctly describes the effects of the repurchase of companys common stock shares?

Net income increases by $7,150.

Stockholders' equity increases $12,250.

Net income decreases by $7,150.

Stockholders' equity decreases $19,100.