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? The market 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 assets increase $350,000.
B)Stockholders' equity increases $200,000.
C)Stockholders' equity increases $330,000.
D)Total assets increase $330,000.

Question

Quizplus · Accepted Answer

The building account increases $370,000 {(10,000 F1F1F1S1F1F1F10 $35) + $20,000} and the cash account decreases $20,000.

Which of the Following Is Correct for Smith Company When