Cari's Bakery, Inc

Multiple Choice

Cari's Bakery, Inc., began operations in October 2017. The owner contributed cash of $18,000 and a delivery truck with fair value of $24,000 to the company.
Which of the following describes how these transactions would affect the company's equity accounts?

A) Increase contributed capital by $42,000
B) Increase earned capital by $42,000
C) Increase contributed capital by $18,000 and earned capital by $24,000
D) Increase earned capital by $18,000 and contributed capital by $24,000
E) None of the above