Ogilvie Corporation Issued 12,000 Shares of No-Par Stock for $40

Multiple Choice

Ogilvie Corporation issued 12,000 shares of no-par stock for $40 per share. Ogilvie was authorized to issue 35,000 shares. What effect will this event have on the company's financial statements?

A) Increase assets by $1,400,000, increase stockholders' equity by $1,400,000.
B) Increase assets by $480,000, increase stockholders' equity by $480,000.
C) Increase cash flow from investing activities by $480,000.
D) None of these answer choices are correct.