Mead, Inc. reports the following information in its December 31, 2016 balance sheet.

On January 1, 2017, Mead acquires 4,000 shares of its own stock from the market for $32,000.

1. Calculate total stockholders equity after the treasury shares are acquired.

1. How many shares will Mead have authorized, issued and outstanding after the

treasury shares are purchased?

Stockholders' equity Paid-in capital Common stock, $5 par value, 400,000 shares authorized, 100,000 shares issued and outstanding Retained earnings Total stockholders' equity $500,000200,000$700,000