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If Baldwin issued 1000 shares of common stock at last year\'s end price, the eff

ID: 2536687 • Letter: I

Question

If Baldwin issued 1000 shares of common stock at last year's end price, the effect on the balance sheet would be: Select: 1 Equity would increase by $45,090 Retained earnings would increase by $4,509 Retained earnings would increase by $45,090 Equity would decrease by $4,509 If Baldwin issued 1000 shares of common stock at last year's end price, the effect on the balance sheet would be: Select: 1 Equity would increase by $45,090 Retained earnings would increase by $4,509 Retained earnings would increase by $45,090 Equity would decrease by $4,509

Explanation / Answer

Assuming the last year share price is $45.09, Equity would increase by $45,090 Option 1 is correct