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Sergeeva-Olga [200]
3 years ago
15

Barn Lumber has 2 million shares of common stock outstanding the stuff for $70 a share of a company has formally dollars of comm

on equity on the balance sheet what is the MVA?
Business
1 answer:
Gre4nikov [31]3 years ago
4 0

Answer: -$6,000,000

Explanation:

Your question is incomplete and I could not find the details for this particular question so I used a variant of it. You can relate it to yours for solving.

Byrd Lumber has 2 million shares of common stock outstanding that sell for $17 a share. If the company has $40 million of common equity on its balance sheet, what is the company's Market Value Added (MVA)?

Market Value Added = Equity market value - Equity book value

= (2,000,000 * 17) - 40,000,000

= -$6,000,000

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We simply debited the cash account and credited the capital account for $30,000 so that the correct posting can be done. So while preparing the ledger accounts we post the amount to the debit side of the cash account and credit side of the common stock account

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