Final answer:
The question is related to determining shareholders' equity in a financial context, illustrated with examples from real estate, showing how to calculate equity as the difference between market value and the amount owed.
Step-by-step explanation:
The question asks about the calculation of shareholders' equity on a specific date, which is a concept in accounting and finance. Shareholders' equity can be explained using examples from real estate, where it is the difference between the market value of a property and the amount owed to the bank. For instance, if Fred's house's market value is $200,000 and he owes $180,000 to the bank, then his equity is $20,000. Similarly, if Freda owns a house valued at $250,000 and owes nothing to the bank, her equity is the full $250,000. In another example, Frank has a house with a market value of $160,000 and owes $60,000 to the bank, leaving him with $100,000 in equity. Although these examples don't provide the answer to the specific question about the shareholders' equity on December 31, 2011, they help illustrate how equity is determined.