Question
Presented below is the stockholders' equity section of Oaks Corporation at December 31, 2020: Common stock, par value $20; authorized 75,000 shares; issued and outstanding
Presented below is the stockholders' equity section of Oaks Corporation at December 31, 2020:
Common stock, par value $20; authorized 75,000 shares; issued and outstanding 45,000 shares | $ 900,000 |
Paid-in capital in excess of par value | 350,000 |
Retained earnings | 442,000 |
| $1,692,000 |
During 2021, the following transactions occurred relating to stockholders' equity:
3,000 shares were reacquired at $30 per share.
1,800 shares of treasury stock were sold at $35 per share.
For the year ended December 31, 2021, Oaks reported net income of $450,000. Assuming Oaks accounts for treasury stock under the cost method, what should it report as total stockholders' equity on its December 31, 2021, balance sheet?
A. | $2,065,000. | |
B. | $2,061,400. | |
C. | $2,173,000. | |
D. | $2,115,000. |
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