Hurd Company acquired a building valued at $154,000 for property tax purposes in exchange for 10,000 shares of its $4 par common stock. The stock is widely traded and selling for $19 per share. At what amount should the building be recorded by Hurd Company?

Select the correct answer.

$40,000

$150,000

$190,000

$154,000

Treasury stock which was purchased for $2,474 is sold for $3,895. Determine the result of these two transactions.

Select the correct answer.

stockholders' equity will be increased by $3,895

income will be increased by $1,421

stockholders' equity will be increased by $1,421

stockholders' equity will not change