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On February 1,2014,Shine Corp

Question 73

Multiple Choice

On February 1,2014,Shine Corp.pays $50,000 for shares of Cloud common stock and another $1,000 in commissions.Assume that Shine sells the Cloud stock on May 20,2014,for $53,000.In this case,Shine recognizes


A) An increase in assets and stockholders' equity for $2,000.
B) An decrease in assets and an increase in stockholders' equity for $2,000.
C) An increase and decrease in assets by the same amount.
D) An increase in assets and stockholders' equity for $3,000.

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