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Which of the following is incorrect for Smith Company when Smith issues 12,400 shares of...

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Accounting

Which of the following is incorrect for Smith Company when Smith issues 12,400 shares of $10 par value common stock and pays $22,400 cash in exchange for a building? The market price of the Smith stock on the exchange date was $35 per share and the buildings book value on the books of the seller was $224,000.

Multiple Choice

The building account increases by $456,400.

Stockholders equity increases $434,000.

The common stock account increases by $124,000.

The additional paid-in capital account increases by $124,000.

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