Brown Corp. recently purchased 2,000 shares of its own $0.50 par value common stock in the market for $32.50 per share. Brown uses the cost method to account for treasury stock. Based on this transaction, Brown's

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Under the cost method, the treasury stock account is debited (increased) by the total cost of the shares repurchased. Brown Corp. bought 2,000 shares at $32.50 each, totaling $65,000 (2,000 shares * $32.50 per share).