E15-10 (Analysis of Equity Data and Equity Section Preparation)

For a recent 2-year period, the bal-

ance sheet of Santana Dotson Company showed the following stockholders equity data at December 31

in millions.

2007 2006

Additional paid-in capital $ 931 $ 817

Common stockpar 545 540

Retained earnings 7,167 5,226

Treasury stock 1,564 918

Total stockholders equity $7,079 $5,665

Common stock shares issued 218 216

Common stock shares authorized 500 500

Treasury stock shares 34 27

Instructions

(a)

Answer the following questions.

(1)

What is the par value of the common stock?

(2)

What is the cost per share of treasury stock at December 31, 2007, and at December 31, 2006?

(b)

Prepare the stockholders equity section at December 31, 2007.