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Problem 1: On December 1, 2020, Tris Corporation exchanged 20,000 shares of its 10 par value ordinary shares held in treasury for a used machine. The treasury shares were acquired by Tris at a cost of 40 per share, and are accounted for under the cost method. On the date of the exchange, the ordinary shares had a fair value of 55 per share (the shares were originally issued at 30 per share). As a result of this exchange, Tris's total equity will increase by
a. 200,000.b. 800,000.c. 1,100,000.d. 900,000.
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