Which of the Following Is Incorrect for Smith Company When

question 27

Multiple Choice

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.

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Definitions:

Safety Goggles

A personal protection device that should be worn when working on equipment to protect the eyes from debris, chemicals, and liquids.

Antistatic Brush

A tool designed to safely remove dust and static charge from electronic components and printed circuit boards (PCBs).

Rubber Roller Cleaner

A cleaning solution or tool designed specifically for maintaining and cleaning the rubber rollers within printers or other machinery, ensuring optimal performance and longevity.

MSDS

Material Safety Data Sheet, documents that describe the properties and hazards of a material, used to ensure safe handling and use.