A Corporation Issues Common Shares in Exchange for Equipment with a Market

question 127

Multiple Choice

A corporation issues common shares in exchange for equipment with a market value of $15,000.This transaction would:

• A) increase retained earnings by $15,000
• B) increase liabilities by $15,000
• C) increase common shares by $15,000
• D) decrease total shareholders' equity by $15,000

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Definitions:

Prey Species

Animal species that are hunted and consumed as food by predator species in an ecological community.

Swift Foxes

A small species of fox native to the North American grasslands, characterized by its swiftness and agility, which has been a focus for conservation efforts due to habitat loss.

Illegal Wildlife Smuggling

The unlawful trade and transport of wild animals or plants, often threatening biodiversity and endangered species.

Black-Market Commerce

The illegal trade of goods and services, circumventing authorized channels, taxation, and regulatory oversight.