Question & Answer: Presented below is the stockholders' equity section of Swifty Corporation at December 31, 2017:…..

Presented below is the stockholders’ equity section of Swifty Corporation at December 31, 2017:

Common stock, par value $20; authorized 75,000 shares;
issued and outstanding 46000 shares $ 920000
Paid-in capital in excess of par value 351000
Retained earnings 506000
$1777000

During 2018, the following transactions occurred relating to stockholders’ equity:

3500 shares were reacquired at $27 per share.
2700 shares were reacquired at $34 per share.
1700 shares of treasury stock were sold at $30 per share.

For the year ended December 31, 2018, Swifty reported net income of $460000. Assuming Swifty accounts for treasury stock under the cost method, what should it report as total stockholders’ equity on its December 31, 2018, balance sheet?

Question & Answer: Presented below is the stockholders' equity section of Swifty Corporation at December 31, 2017:..... 1

$2098100.
$1641700.
$2094400.
$2101700.
Expert Answer

 

Question & Answer: Presented below is the stockholders' equity section of Swifty Corporation at December 31, 2017:..... 2

So, the right answer is $2,101,700

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