Museum Corporation acquired a new manufacturing building by issuing 10,000 shares of its $50 par value preferred stock with a $75 per share market price. Similar buildings have recently cost $780,000 . What are the effects of this transaction on the accounting equation for Museum?
a. Building and Preferred Stock increase $780,000.
b. Building and Preferred Stock increase $500,000.
c. Building increases $780,000; Preferred Stock increases $500,000; Additional Paid-in Capital—Preferred increases $280,000.
d. Building increases $750,000; Preferred Stock increases $500,000; Additional Paid-in Capital—Preferred increases $250,000.
d
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What will be an ideal response?
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Answer the following statement true (T) or false (F)