On December 1, 2012, Cole Corporation exchanged 15,000 shares of its $10 par val

Question

On December 1, 2012, Cole Corporation exchanged 15,000 shares of its $10 par value common stock held in treasury for a used machine. The treasury shares were acquired by Cole at a cost of $40 per share. On the date of the exchange, the common stock had a market value of $55 per share (the shares were originally issued at $30 per share). As a result of this exchange, Cole's total stockholders' equity will increase by
a. $225,000.
b. $600,000.
c. $675,000.
d. $825,0000
i'm thinking it's a; 55 - 40 x 15000

Explanation / Answer

otal stockholders' equity will increase = 15,000 *(55-10) =$675000 c. $675,000.

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