On December 1, 2008, Lynn Corporation Exchanged 20,000 Shares of Its

On December 1, 2008, Lynn Corporation exchanged 20,000 shares of its $10 par value common stock held in treasury for a used machine. The treasury shares were acquired by Lynn at a cost of $40 per share, and are accounted for under the cost method. On the date of the exchange, the common stock had a market value of $55 per share (the shares were originally issued at $30 per share) . As a result of this exchange, Lynn's total stockholders' equity will increase by

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