A Company Purchased Treasury Stock for $19,000; the Treasury Stock

A company purchased treasury stock for $19,000; the treasury stock was initially issued for $12,000 and had a $5,000 par value.Which of the following statements correctly describes the effects of the treasury stock purchase?

A) Net income increases by $7,000.
B) Net income decreases by $7,000.
C) Stockholders' equity increases $12,000.
D) Stockholders' equity decreases $19,000.