Answer:
option (C) $1,201,300
Explanation:
Data provided in the question:
Balance in retained earnings = $492,000
Balance in Common Stock = $605,000
Net income earned = $92,000
Dividend paid = $15,200
Common stocks issued = $27,500
Now,
Common Stock
= Balance in Common Stock + Common stocks issued
= $605,000 + $27,500
= $632,500
Retained Earnings
= Balance in retained earnings + Net income earned - Dividend paid
= $492,000 + $92,000 - $15,200
= $568,800
Total Stock Holders Equity on Dec 31,2012
= Common Stock + Retained Earnings
= $632,500 + $568,800
= $1,201,300
Hence,
The answer is option (C) $1,201,300
