Question regarding the stockholders equity


A company issued 100,000 shares of common stock with a par value of $1 per share. The stock sold for $20 per share. By what amount does stockholders' equity increase?

a. $100,000

b. $1,900,000

c. $2,000,000

d. No change in stockholders' equity

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Finance Basics: Question regarding the stockholders equity
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