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This company reported the following information in the stockholders\' equity sec

ID: 2460788 • Letter: T

Question

This company reported the following information in the stockholders' equity section of its December 31, 2014, balance sheet: IVa Cumulative, Non-participating Preferred Stock, S100 par, 500 $50,000 shares authorized, issued, and outstanding, callable at par value Refer to Landmark Company. If the company repurchased 500 shares of its common stock for S20 per share, what is tire amount of total stockholders' equity after this transaction $1,494,000 $1,490,000 $1,500,000. $1,510,000 Common Stock, $12 par, 100,000 shares authorized Paid-in Capital in Excess of Par-Common Stock Retained Earnings 600,000 25,000 825,000

Explanation / Answer

Preferred stock

$50,000

Common stock

600,000

Paid in capital in excess of par

25,000

Retained earnings

825,000

Less: Treasury stock(500*20)

-10,000

total

$1,490,000

Option B

Preferred stock

$50,000

Common stock

600,000

Paid in capital in excess of par

25,000

Retained earnings

825,000

Less: Treasury stock(500*20)

-10,000

total

$1,490,000