Answer and Explanation:
The preparation of stockholders' equity is shown below:-
Stockholder's equity Statement
December 31, 2021
Particulars Amount ($)
Paid-in capital
Preferred Stock $2,100,000
Common Stock $450,000
Additional paid in capital $7,300,000
Total paid in capital $9,850,000
Add:Retained earnings $1,450,000
sub total $11,300,000
Less: Treasury stock $700,000
Total stockholders' equity $10,600,000
