McCallister Corp

Multiple Choice

McCallister Corp. acquired a machine in exchange for 100 shares of $2 par-value common stock. The fair market value of McCallister's stock at the time of the exchange was $53 per share. The company selling the machine to McCallister showed a book value of that machine of $4,000. Because of this transaction, McCallister's

A) equipment account increased by $200.
B) common stock account increased by $5,300.
C) additional paid-in capital account increased by $2,000.
D) additional paid-in capital account increased by $5,100.
E) net income increased by $1,300.