Asked by
Kendra Schill
on Oct 27, 2024
Verified
A company reported total stockholders' equity of $340,000 on its balance sheet dated December 31,2018.During the year ended December 31,2019,the company reported net income of $40,000,declared and paid a cash dividend of $8,000,declared and distributed a 10% stock dividend with a $10,000 total market value,issued additional common stock for $60,000,and paid $12,000 to purchase treasury stock.What is total stockholders' equity as of December 31,2019?
A) $432,000.
B) $410,000.
C) $444,000.
D) $420,000.
Stockholders' Equity
The residual interest in the assets of a corporation after deducting its liabilities, representing the ownership interest held by stockholders.
Common Stock
A type of corporate equity security that represents a share of ownership in a corporation, conferring voting rights and a portion of the profits (dividends).
Treasury Stock
Shares that were issued and subsequently reacquired by the issuing company, reducing shareholders' equity.
- Assess the influence of common and preferred stock issuance on the cumulative equity of stockholders.
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Learning Objectives
- Assess the influence of common and preferred stock issuance on the cumulative equity of stockholders.