If a Person Starting a Business Had an Investment of a Building

question 38

Multiple Choice

If a person starting a business had an investment of a building, valued at $300,000 with an $180,000 outstanding mortgage and issued stock for the balance, the effect would be to:

• A)increase assets by $120,000.
• B)increase assets by $180,000.
• C)increase stockholders' equity by $120,000.
• D)increase stockholders' equity by $300,000.