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Smith Company exchanges assets to acquire 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 $250,000.
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 the building?
A. Total assets increase $350,000.
B. Stockholders' equity increases $250,000.
C. Stockholders' equity increases $330,000.
D. Total assets increase $330,000.
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Answers: 3
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Smith Company exchanges assets to acquire a building. The market price of the Smith stock on the exc...
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