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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:
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Question & Answer: Presented below is the stockholders' equity section of Swifty Corporation at December 31, 2017:…..
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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?
| $2098100. |
| $1641700. |
| $2094400. |
| $2101700. |
Expert Answer
So, the right answer is $2,101,700
