Question

ix company issued 16,000 shares of $10 par value common stock at a market price of $21. as a result of this accounting event, the amount of stockholders equity would

Answer 1

increase by $336,000.

Step-by-step explanation:

Options are "1. increase by $176,000. 2. increase by $336,000. 3. increase by $160,000. 4. be unaffected."

Common stock will increase by $160,000, the par value, and paid-in capital in excess of par value will increase by $176,000, for a total increase in stockholders' equity of $336,000.