Giphons Corp. has common stock of $3,000,000, Retained Earnings of $1,800,000, unrealized gains on trading securities of $60,000 and unrealized losses on available-for-sale securities of $110,000. What is the total amount of their stockholders' equity?
A) $4,690,000.
B) $4,800,000.
C) $4,740,000.
D) $4,630,000.

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 $3,000,000 + $1,800,000 + $60,000 - $110,000 = $4,750,000. However, the closest option is $4,690,000, which suggests a possible error in the options or calculation.