Which of the following is correct for Smith Company when Smith issues 10,000 shares of $10 par value common stock and pays $27,500 cash in exchange for a building? The market price of the Smith stock on the exchange date was $30 per share and the building's book value on the books of the seller was $275,000. Total assets increase $300,000. Stockholders' equity increases $272,500. Stockholders' equity increases $275,000. Total assets increase $272,500.