In the case of asset exchange, List price of new assets minus trade in allowance for old asset is equal cash paid

Select one:

a. True.

b. False.

Assume that Y Company issued 100,000 shares of $1 par value common stock at a price of $10 per share. In addition, it has retained earnings of $400,000. The total stockholders equity is ------

Select one:

a. $500,000.

b. $900,000.

c. $1,400,000.

d. $400,000.