Romesco Corporation's December 31 2017 balance sheet showed the following: 8% preferred stock $10 par value cumulative 40000 shares $\begin{array}{lr}
\text {authorized; 20,000 shares issued}& \$ 400,000 \
\text {Common stock, $ \$ 10 $ parvalue, 4,000,000 shares authorized;}&\
\text {$ 1,950,000 $ shares issued, $3,860,000 $ shares outstanding}&39,000,000\
\text { Paid-in capital in excess of par-preferred stock } & 120,000 \
\text { Paid-in capital in excess of par-common stock } & 54,000,000 \
\text { Retained earnings } & 15,300,000 \
\text { Treasury stock (40,000 shares) } & 1,260,000
\end{array}$
Romesco's total stockholders' equity was

Question

Romesco Corporation's December 31 2017 balance sheet showed the following: 8% preferred stock $10 par value cumulative 40000 shares $\begin{array}{lr}
\text {authorized; 20,000 shares issued}& \$ 400,000 \
\text {Common stock, $ \$ 10 $ parvalue, 4,000,000 shares authorized;}&\
\text {$ 1,950,000 $ shares issued, $3,860,000 $ shares outstanding}&39,000,000\
\text { Paid-in capital in excess of par-preferred stock } & 120,000 \
\text { Paid-in capital in excess of par-common stock } & 54,000,000 \
\text { Retained earnings } & 15,300,000 \
\text { Treasury stock (40,000 shares) } & 1,260,000
\end{array}$
 Romesco's total stockholders' equity was

Quizplus · Accepted Answer

To calculate Romesco's total stockholders' equity, add the values of preferred stock, common stock, paid-in capital in excess of par for both preferred and common stock, and retained earnings, then subtract the treasury stock:- Preferred stock: $400,000- Common stock: $39,000,000- Paid-in capital in excess of par-preferred stock: $120,000- Paid-in capital in excess of par-common stock: $54,000,000- Retained earnings: $15,300,000- Treasury stock: -$1,260,000Total stockholders' equity = $400,000 + $39,000,000 + $120,000 + $54,000,000 + $15,300,000 - $1,260,000 = $107,560,000. However, given the options provided, the closest correct answer is D) $107,460,000, indicating a possible typo in the calculation or the options provided.

Romesco Corporation's December 31 2017 Balance Sheet Showed the Following