Answer:
correct option is c. 2,200,000
Explanation:
given data
exchanged = 40,000 shares
common stock = $10
cost = $40
fair value = $55 per share
originally issued = $30 per share
to find out
total stockholders' equity will increase
solution
we will find stockholders' equity that is increase by as given formula
Increase in total shareholder's stock equity = No. of shares × Fair value per share ................1
put here value
Increase in total shareholder's stock equity = 40,000 × $55
Increase in total shareholder's stock equity = $2,200,000
so correct option is c. 2,200,000