On December 1, 2014, Abel Corporation Exchanged 40,000 Shares of Its

On December 1, 2014, Abel Corporation exchanged 40,000 shares of its $10 par value common stock held in treasury for a used machine. The treasury shares were acquired by Abel at a cost of $40 per share, and are accounted for under the cost method. On the date of the exchange, the common stock had a fair value of $55 per share (the shares were originally issued at $30 per share) . As a result of this exchange, Abel's total stockholders' equity will increase by

A) $ 400,000.
B) $1,600,000.
C) $2,200,000.
D) $1,800,000.

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