As of December 31, 2016, Warner Corporation reported the following: Divideneds p
ID: 2467864 • Letter: A
Question
As of December 31, 2016, Warner Corporation reported the following:
Divideneds payable: $20,000
Treasury stock: 600,000
Paid-in capital- share repurchase: 20,000
Other paid-in capital accounts: 4,000,000
Retained earnings: $3,000,000
During 2017, half of the treasury stock was resold for $240,000; net income was $600,000 cash dividends declared were $1,500,000; and stock dividends declared were $500,000.
What was shareholder's equity as December 31, 2016?
A.) $6,400,000
B.) $6,420,000
C.) $6,440,000
D.) $7,020,000
Explanation / Answer
The value of shareholder's equity is calculated with the use of following table:
The value of shareholder's equity as on December 31, 2016 is $6,420,000 (which is Option B)
Paid-In Capital-Share Repurchase 20,000 Other Paid-In Capital Accounts 4,000,000 Retained Earnings 3,000,000 Less Treasury Stock 600,000 Total Shareholder's Equity $6,420,000Related Questions
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