Overton, Inc had the following transactions in 2017, its first year of operations
• Issued 8,000 shares of common stock. Stock has par value of $0.01 per share and was issued at $40.00 per share.
• Earned net income of $200,000.
• Paid dividends of $8.00 per share.
At the end of 2017, what is total stockholders' equity?
A) $320,000
B) $456,000
C) $136,000
D) $584,000
B .B)
Common stock (8,000 x $40 ) $320,000
Net income $200,000
Dividend payment ($8 x 8,000 ) $(64,000 )
The total stockholders' equity $456,000
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