Question 33

Holmes Company has 130,000 shares authorized and 10,000 shares issued of $20 par value common stock. On January 1, 2016, the company issues an additional 2,000 shares of common stock in exchange for a building, which has a market value of $600,000. The journal entry to record the exchange will cause Total Paid-In Capital to:

	A.	Increase by $ 40,000
	B.	Increase by $200,000
	C.	Increase by $360,000
	D.	Increase by $600,000