Final answer:
The total stockholders' equity, calculated by adding common stock, paid-in capital, and retained earnings, then subtracting treasury stock, amounts to $700,000.
Step-by-step explanation:
To calculate the total stockholders' equity, add the common stock, paid-in capital in excess of par, and retained earnings together, then subtract treasury stock:
Common Stock: $500,000
Paid-In Capital in Excess of Par-Common Stock: $50,000
Retained Earnings: $190,000
Subtotal: $500,000 + $50,000 + $190,000 = $740,000
From this subtotal, we need to subtract the treasury stock, which is a contra-equity account:
Treasury Stock: $40,000
Total Stockholders' Equity: $740,000 - $40,000 = $700,000