On December 31 2014 the Stockholders Equity section of Mercedes
On December 31, 2014, the Stockholders’ Equity section of Mercedes Corporation was as follows:
Common stock, par value $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 dividend 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.

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

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
Relevant Tutors available to help