Presented below are the stockholders' equity sections for AMR Corporation for 2004 and 2003.

All amounts are in millions, except number of shares and par value.

(a) Explain why common stock is classified as part of stockholders’ equity.

(b) Explain why treasury stock is not classified as an asset.

(c) Explain what is meant by “Accumulated other comprehensive loss.”

(d) Why is the accumulated deficit larger in 2004 than in 2003?

Compute book value per share for AMR for 2004.

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2004 Stockholders' Equity (Deficit) Preferred stock-20,000,000 shares authorized; none issued Common stock-$1 par value; 750,000,000 shares authorized; 182,350,259 shares issued $ -0- 2003 $ -0- 182 Additional paid-in capital 2,521 Treasury shares at cost: 2004-21,194,312; 2003-22,768,027 (1,308) 182 2,605 (1,405) Accumulated other comprehensive loss (664) (785) Accumulated deficit (1,312) (551) $ (581) 46