Question

QUESTION 1 of 10: A corporation sold 100,000 shares of stock when the company was formed at $20 per share. After the first year of
operations the company made a profit of $25,000 and distributed dividends of $.10 per share. What was the total value of stockholder's equity
at the end of the year?

Answer 1

Answer:

option b. $2,000,000.

Step-by-step explanation:Explanation:

Increase in stockholders equity = Number of shares sold * Selling price per share

Increase in stockholders equity = 100,000 shares * $20

Increase in stockholders equity = $2,000,000