Please Refer to the Following Information for Peartree Company

Please refer to the following information for Peartree Company:
• Common stock, $1.00 par, 100,000 issued, 95,000 outstanding
• Paid-in capital in excess of par: $2,150,000
• Retained earnings: $910,000
• Treasury stock: 5,000 shares purchased at $20 per share
-
If Peartree purchases an additional 1,000 shares of treasury stock at $18 per share, which of the following statements would be TRUE?

A) The Treasury stock account would go down by $18,000.
B) The Paid-in capital account would not be affected.
C) The Retained earnings account would go down by $2,000.
D) The Paid-in capital account would go down by $2,000.