Apartment Depot issued 500,000 shares of no par value stock for \$250,000. What does this transaction imply about the company's equity and asset accounts?

• A. The company's equity and assets both decrease by \$250,000.
• B. The company's assets increase by \$250,000, but equity remains unchanged.
• C. The company's equity increases by \$250,000, but assets remain unchanged.
• D. The company's equity and assets both increase by \$250,000.

Answer: (D)