What Is The Total Stockholders' Equity Based On The Following Account Balances?

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What Is The Total Stockholders' Equity Based On The Following Account Balances?

Common Stock $400,000 Paid-In Capital in Excess of Par 40,000 Retained Earnings 190,000 Treasury Stock 20,000 a. $640,000 b. $630,000 c. $610,000 d. $650,000 e. $440,000
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The correct answer is C. The total of stockholders' equity is the sum of common stock, paid-in capital in excess of par and retained earnings less treasury stock. In this case, the total stockholders' equity is: ($400,000 + $40,000 + $190,000) - $20,000 = $630,000 - $20,000 = $610,000.

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