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Question - Gote & Gunners, Inc. exchanged 1,250 shares of its own common stock for equipment. The Gote & Gunners common stock has a quoted market value of $22 per share at the date of exchange and with no par value. What journal entry should Gote & Gunners make to record this exchange?
a. Equipment 27,500
Common Stock 27,500
b. Equipment 12.5
Common Stock 12.5
c. Equipment 27,500
Additional Paid in Capital in Excess of Par 27,487.5
d. Equipment 27,487.5
Common Stock 27,487.5
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