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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. The building's book value on the books of the seller was $200,000.



A. Stockholders equity increases $200,000
B. Stockholders equity increases $330,000
C. Total assets increase $350,000
D. Total assets increase $370,000

This question is part of Accounting practice final
Asked by Mackenzie_Roman, Last updated: Feb 16, 2020

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1 Answer

John Smith

John Smith

Answered Oct 26, 2016

Total assets increase $350,000
 

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