On December 1, 2012, Abel Corporation Exchanged 20,000 Shares of Its

On December 1, 2012, Abel Corporation exchanged 20,000 shares of its $10 par value ordinary shares held in treasury for a used machine.The treasury shares were acquired by Abel at a cost of $40 per share, and are accounted for under the cost method.On the date of the exchange, the ordinary shares had a fair value of $55 per share (the shares were originally issued at $30 per share) .As a result of this exchange, Abel's total equity will increase by

A) $200,000.
B) $800,000.
C) $1,100,000.
D) $900,000.