Answer: B. $845,000
Explanation:
Given the following :
Retained earnings = $400,000
Treasury stock―common = 20,000
Paid-in capital in excess of par value―common = 55,000
Treasury stock―preferred = 30,000
Common stock = 200,000
Preferred stock = 180,000
Paid-in capital in excess of par value―preferred = 60,000
total stockholders' equity = (Retained earnings - treasury stock—common + paid-in capital in excess of par value—common - treasury stock—preferred + common stock + preferred stock + paid-in capital in excess of par value—preferred)
Total stockholders' equity = ($400,000 - $20,000 + $55,000 - $30,000 + $200,000 + $180,000 + $60,000)
Total stockholders' equity = $845,000
