Big Company reported the following balances on its $12/31/$X$1$ balance sheet:

Capital Stock $($$$1$ par$)$ $$100,000$

Additional Paid in Capital $$400,000$

Preferred Stock $(5\%)$ $$1,000$ par $$500,000$

Retained Earnings $$400,000$

Total Equity $$1,400,000$

Assume that on $1/1/$X$2,$ Big purchased $10,000$ shares of Big common stock at an average price of $$4$ per share and $100$ shares of Big preferred stock for $$1,002$ per share. How much total equity should Big report immediatey after the share purchases on $1/2/$X$2?$

Answer rating: 100% (QA)

First lets calculate the total cost of the shares purchased 1 Common Stock Number of shares 10000 sh... View the full answer