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.
Answers: 3
Other questions on the subject: Business
Business, 22.06.2019 09:30, kingtrent81
Cash flows during the first year of operations for the harman-kardon consulting company were as follows: cash collected from customers, $385,000; cash paid for rent, $49,000; cash paid to employees for services rendered during the year, $129,000; cash paid for utilities, $59,000. in addition, you determine that customers owed the company $69,000 at the end of the year and no bad debts were anticipated. also, the company owed the gas and electric company $2,900 at year-end, and the rent payment was for a two-year period.
Answers: 1
Business, 22.06.2019 20:20, dd123984
Levine inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. direct materials (9 pounds at $1.80 per pound) $16.20 direct labor (6 hours at $14.00 per hour) $84.00 during the month of april, the company manufactures 270 units and incurs the following actual costs. direct materials purchased and used (2,500 pounds) $5,000 direct labor (1,660 hours) $22,908 compute the total, price, and quantity variances for materials and labor.
Answers: 2
Business, 22.06.2019 20:50, fernandoramirez086
Happy foods and general grains both produce similar puffed rice breakfast cereals. for both companies, thecost of producing a box of cereal is 45 cents, and it is not possible for either company to lower their productioncosts any further. how can one company achieve a competitive advantage over the other?
Answers: 1
Business, 22.06.2019 21:10, kalawson2019
You own a nonunion company with 93 nonexempt employees. all of these employ- ees pack books into boxes for shipment to customers throughout the united states. because of wide differences in performance, you have decided to try performance appraisal, something never done before. until now, you have given every worker the same size increase. now you want to measure performance and reward the best performers with bigger increases. without any further information, which of the five types of appraisal formats do you think would be most appropriate? justify your answer. do you anticipate any complaints, or other comments, from employees after you implement your new system?
Answers: 1
You know the right answer?
Smith Company exchanges assets to acquire a building. The market price of the Smith stock on the exc...
Questions in other subjects:
Business, 24.04.2020 02:59
Mathematics, 24.04.2020 02:59
Social Studies, 24.04.2020 02:59
Geography, 24.04.2020 02:59
History, 24.04.2020 02:59
