Contribution of land by stockholderA)Increase assets, increase liabilitiesB)Increase liabilities, decrease stockholders' equityC)Increase assets, increase stockholders' equityD)No effectE)Decrease assets, decrease liabilitiesF)Decrease assets, decrease stockholders' equity

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MOSES NGANGA · Accepted Answer

Final Answer : c, Explanation :  Contribution of land by a stockholder is an increase in assets, as land is being acquired. It does not affect liabilities or decrease assets. It increases stockholders' equity as it is being contributed by the stockholder.

Contribution of land by stockholder
A)Increase assets, increase liabilities
B)Increase liabilities, decrease stockholders' equity
C)Increase assets, increase stockholders' equity
D)No effect
E)Decrease assets, decrease liabilities
F)Decrease assets, decrease stockholders' equity

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