Question

Stockholders' equity is: Group of answer choices c. the amount the company received for all stock authorized plus the amount of retained earnings and treasury stock. b. the par value the company received for all stock issued plus the amount of retained earnings minus treasury stock. a. the amount the company received for all stock when issued minus the amount of retained earnings and treasury stock. d. the amount the company received for all stock when issued plus the amount of retained earnings minus treasury stock.

Answer 1

amount the company received in exchange for all stock issued plus the amount of Retained Earnings minus the cost of treasury stock.

Step-by-step explanation:

The stockholder equity represents the amount which is left after paying off the liabilities from the cash available. It is comprise of common stock, retained earnings, additional paid in capital minus treasury stock as it shows the buy back of shares

In mathematically,

Stockholder equity = Exchanged value + additional common stock + additional paid in capital + retained earnings - treasury stock

Hence, it derives the exchanged value