Question

Sunland Company has the following items: common stock, $969000; treasury stock, $106000; deferred income taxes, $125000 and retained earnings, $453000. What total amount should Sunland Company report as stockholders’ equity?

Answer 1

The Stockholder equity is $1,316,000

Step-by-step explanation:

The computation of the total amount reported as a stockholder equity is shown below:

Stockholder equity is

= Common stock - treasury stock + retained earnings

= $969,000 - $106,000 + $453,000

= $1,316,000

hence, the Stockholder equity is $1,316,000

We simply applied the above formula

The same is to be considered