On December 31, 2014, the Stockholders Equity section of Mercedes Corporation was as follows: Common stock, par

Question:

On December 31, 2014, the Stockholders’ Equity section of Mercedes was as follows:
Common stock, $5; authorized 30,000 shares;
issued and outstanding, 9,000 shares $ 45,000
Additional paid-in capital 58,000
Retained earnings 73,000
Total stockholders’ equity $176,000

On March 1, 2015, the board of directors declared a 10% stock and accordingly issued 900 additional shares. The stock’s fair value at that time was $8 per share. For the three months ended March 31, 2015, Mercedes sustained a net loss of $16,000.

Required:
What amount should the company report as retained earnings on its quarterly financial statement dated March 31, 2015?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...