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c. Purchased land and a building from Gretchen Northway in exchange for stock issued at par. The building is mortgaged for $415,000 for 20 years
c. Purchased land and a building from Gretchen Northway in exchange for stock issued at par. The building is mortgaged for $415,000 for 20 years at 7% and there is accrued Interest of $4,000 on the mortgage note at the time of the purchase. It is agreed that the land is to be priced at $302.000 and the building at $620,000, and that Northway's equity will be exchanged for stock at par. The corporation agreed to assume responsibility for saying the mortgage note and the accrued interest. Indicate whether the following actions would increase, decrease, or not affect Indigo Inc.'s total assets, liabilities, and stockholders' equity: Stockholders' Assets Liabilities Equity 1. Authorizing and issuing stock certificates in a stock split 2. Declaring a stock dividend 3. Issuing stock certificates for the stock dividend declared in (2) 4. Declaring a cash dividend 5. Paying the cash dividend declared in (4)
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