Comanic Corp. has common stock of $5400000 retained earnings of $2000000 unrealized gains on trading securities of $100000 and unrealized losses on available-for-sale securities of $200000. What is the total amount of its stockholders' equity?
A) $7200000
B) $7400000
C) $7300000
D) $7500000

Question

Quizplus · Accepted Answer

Stockholders' equity is calculated as the sum of common stock and retained earnings, adjusted for unrealized gains and losses. Here, it is $5400000 (common stock) + $2000000 (retained earnings) + $100000 (unrealized gains on trading securities) - $200000 (unrealized losses on available-for-sale securities) = $7200000.