Markell Corporation\'s Shareholders\' (Stockholders\') Equity at the beginning o

Question

Markell Corporation's Shareholders' (Stockholders') Equity at the beginning of the year was $175,000. During the year, Markell reported the following: 12. Net Income of $79,000 Dividends declared and paid totaling $17,000 Issued (sold) stock to shareholders (stockholders) in exchange for $42,000 cash Some shareholders (stockholders) sold some of their stock to other individuals for $11,000 cash What is Markell's Shareholder (Stockholder) Equity at the end of the year? A. $296,000 B. $279,000 C. $290,000 D. $273,000

Explanation / Answer

Correct answer is option B.$2,79,000

Calculation of Markells Shareholders Equity at the end of the year

Opening balance of Equity $1,75,000

Add:- Net Income for the year $79,000

Less:- Dividend declared & Paid $17,000

Add:- Stock issued to shareholders $42,000

CLOSING EQUITY $2,79,000

NOTE:- Share sold by shareholers to other individual doesn't effect companys Equity balance

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