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A Company Issues $20 Million in New Stock

Question 50

Multiple Choice

A company issues $20 million in new stock.The company later uses this money to acquire a building.What is the resulting effect of these transactions on the accounts?


A) Building increases,and Contributed Capital increases.
B) Building increases,and Contributed Capital decreases.
C) Cash increases,Building increases,and Contributed Capital increases.
D) Cash decreases,Building increases,and Contributed Capital decreases.

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