Question 1 On December 1, 2018, Bramble Corp. exchanged 49000 shares of its $10

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Question 1 On December 1, 2018, Bramble Corp. exchanged 49000 shares of its $10 par value common stock held in treasury for a used machine. The treasury shares were acquired by Bramble at a cost of $40 per share, and are accounted for under the cost method. On the date of the exchange, the common stock had a fair value of $55 per share (the shares were originally issued at $30 per share). As a result of this exchange, Bramble's total stockholders' equity will increase by $2205000. 490000. $1960000. $2695000 LINK TO TEXT

Explanation / Answer

Increase in Stockholders' equity=49000*55= $2695000 Option 4 is correct

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