Which of the following is correct for Smith Company when Smith issues 10,000 shares of $10 par value common stock and pays $20,000 cash in exchange for a building?
Which of the following is correct for Smith Company when Smith issues
10,000 shares of $10 par value common stock and pays $20,000 cash in exchange for a building? Themarket price of the Smith stock on the exchange date was $35 per share and the building’s book value on the books of the seller was $200,000.
A, Total assert increase 350,000
B, Stockholders equity increases 200,000
C, Stockholders equity increases 330,000
D, Total assets increase 330,000
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