Question

Presented below is information related to Kaenzig Corporation: Common Stock , $1 par $2,100,000 Paid-in Capital in Excess of Par – Common Stock 550,000 Preferred 8 ½% Stock, $50 par 1,700,000 Paid-in Capital in Excess of Par—Preferred Stock 950,000 Retained Earnings 2,350,000 Treasury Common Stock (at cost) 250,000 The total stockholders' equity of Kaenzig Corporation is?

Answer 1

$7,400,000

Step-by-step explanation:

The computation of the total stockholders' equity is shown below:

= Common stock + Paid-in Capital in Excess of Par – Common Stock + Preferred 8 ½% Stock + Paid-in Capital in Excess of Par—Preferred Stock + Retained Earnings - treasury Common Stock

= $2,100,000 + $550,000 + $1,700,000 + $950,000 + $2,350,000 - $250,000

= $7,400,000

We added all the items except Treasury stock as it is deducted while computing the total stockholder equity