Which of the Following Is Correct for Smith Company When

Multiple Choice

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 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.

A) Total assets increase $350,000.
B) Stockholders' equity increases $250,000.
C) Stockholders' equity increases $330,000.
D) Total assets increase $330,000.