Bob Smith, Starting His Own Business, Made an Investment of a Building

Multiple Choice

Bob Smith, starting his own business, made an investment of a building to the company. The building is valued at $1,200,000 with a $1,080,000 outstanding mortgage payable.
The effect of this transaction on the accounting equation of the business would be to:

A) Increase assets by $120,000
B) Increase assets by $1,080,000
C) Increase stockholders' equity by $120,000
D) Increase stockholders' equity by $1,200,000