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the answers i have is 5 (10,000) and 6 (9,850) which are correct from the book but don't understand why, could you explain the formulas
the answers i have is 5 (10,000) and 6 (9,850) which are correct from the book but don't understand why, could you explain the formulas for each
PROBLEM 1: (8 pts.) Stockholders Equity On January 1, 2016, the stockholders' equity section of Tazo Corporation's balance sheet reported the following: $100,000 Common stock, par $10, authorized 100,000 shares, 10,000 issued shares and 10,000 outstanding shares. Additional paid-in capital Retained earnings $ 50.000 $160,000 During 2016, the following selected transactions occurred (assume they occurred in the order given): May March 200 shares of treasury stock were purchased at 1 $11 per share. 50 shares of treasury stock (from the March 1st 1 repurchase) were resold for $9 per share. Both in Declared and paid a cash dividend of $2.00 per Sept. share. Dec. 31 Net income was $30,000 for full year 2016 Required: Complete the following items/blanks (1-7) for the stockholders' equity section of the balance sheet as of December 31, 2016. Taza Corporation Stockholders' Equity (Partial Balance Sheet) December 31, 2016 Common stock, par $10; authorized 100,000 shares; (1) $ (5) issued shares; (6) outstanding shares Additional paid-in capital (2) Retained earnings (3) $ Less:_47). Treasury Stock shares (4) A total of stockholders' equity is NOT requiredStep by Step Solution
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