Answer:
$1120
Explanation:
The chart of the question is in the below image.
Consumer surplus is the area above the price line and below the demand curve whereas producer surplus is the area below the price line and above the supply curve. These areas can be calculated by using the formula of area of a triangle which is
If the government imposed a price floor of $28 then the consumer surplus will be:
A = (1/2)×$40×($48 -$28)
A = $400
The producer surplus = ($28 -$20)×$40 + (1/2)×($20-$0)×($40 -$0)
The producer surplus = $8× $40 + $400 = $320+$400 = $720
Total surplus can be calculated as:
Total Surplus = Consumer surplus + Producer Surplus
Total Surplus = $400 + $720 = $1120
Total Surplus is $1120
Answer and Explanation:
The preparation of the statement of the stockholder equity and balance sheet would be shown in the attachment below:
The formulas for ending retained earning balance and stockholder equity is
Ending retained earnings = Opening retained earnings + net income - dividend paid
And, the ending equity is
= Opening equity + additional shares
The same would be shown in the attachment
