Retained earnings, $400,000 Treasury stock-common, $20,000 Paid-in capital in excess of par value-common, $55,000 Treasury stock-preferred, $30,000 Common stock, $200,000 Preferred stock, $180,000 Paid-in capital in excess of par value-preferred, $60,000 How much is total stockholders' equity?

A. $895,000

B. $845,000

C. $945,000

D. $885,000

Answer: B. $845,000

Explanation:

Given the following:

Retained earnings = $400,000

Treasury stock-common = 20,000

Paid-in capital in excess of par value-common = 55,000

Treasury stock-preferred = 30,000

Common stock = 200,000

Preferred stock = 180,000

Paid-in capital in excess of par value-preferred = 60,000

total stockholders' equity = (Retained earnings - treasury stock-common + paid-in capital in excess of par value-common - treasury stock-preferred + common stock + preferred stock + paid-in capital in excess of par value-preferred)

Total stockholders' equity = ($400,000 - $20,000 + $55,000 - $30,000 + $200,000 + $180,000 + $60,000)

Total stockholders' equity = $845,000