What are the effects of transaction on the accounting

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Problem 1: 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 increases $780,000; Preferred Stock increases $500,000; and Additional Paid-In Capital-Preferred increases $280,000.
b. Building increases $750,000; Preferred Stock increases $500,000; and Additional Paid-In Capital-Preferred increases $250,000.
c. Building and Preferred Stock increase $500,000.
d. Building and Preferred Stock increase $780,000.

Reference no: EM132826459

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