Which of the following is incorrect 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)The common stock account increases by $100,000.
B)The building account increases by $350,000.
C)Stockholders' equity increases $350,000.
D)The additional paid-in capital account increases by $250,000.

Question

Quizplus · Accepted Answer

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

Which of the Following Is Incorrect for Smith Company When