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***USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT TWO QUESTIONS:*** Subara Corporation purchases 1,000 shares of its own $10 par value stock for $15 per share. The transaction is recorded using the cost method 15. Proper recording of this transaction will A) result in a decrease in stockholders' equity B) result in a decrease in net income C) result in an increase in investments D) include a debit to an Additional Paid-In Capital for $5,000 16. Assume that Subara reissued the stock for $14 per share. Which of the following statements is true? A) Common Stock will be credited for $5,000 B) Treasury Stock will be credited for $15,000 C) Net income will be reduced by a loss on treasury stock of $1,000 D) An Additional Paid-In Capital account will be credited for $2,000 17. The beginning balance of Retained Earnings was $100 and the ending balance of Retained Earnings was $125. Dividends declared for the period were $30. What was the net income? A) $25 B) $55 C) $15 D) $5