Smith Company exchanges assets to acquire a building. The market price of the Smith stock on the exchange date was $$40$ per share and the building's book value on the books of the seller was $$225,000.$

Which of the following is correct for Smith Company when Smith issues $10,000$ shares of $$10$ par value common stock and pays $$22,500$ cash in exchange for the building?

Multiple Choice

Stockholders' equity increases $$377,500.$

Total assets increase $$377,500.$

Stockholders' equity increases $$225,000.$

Total assets increase $$400,000.$