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

please explain and show the journal entry. thank you.