Ix Company issued 18,000 shares of $10 par value common stock at a market price

Question

Ix Company issued 18,000 shares of $10 par value common stock at a market price of $22. As a result of this accounting event, the amount of stockholders' equity would

a). increase by $216,000.

b). be unaffected.

c). increase by $396,000.

d). increase by $180,000.

Ix Company issued 18,000 shares of $10 par value common stock at a market price of $22. As a result of this accounting event, the amount of stockholders' equity would

a). increase by $216,000.

b). be unaffected.

c). increase by $396,000.

d). increase by $180,000.

Explanation / Answer

c). increase by $396,000.

the amount of stockholders' equity=18,000 shares*$22=$396,000.

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