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### Intermediate Accounting (Kieso)

Book edition 16th
Author(s) Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Pages 1552 pages
ISBN 9781118743201

# (Analysis of Equity Data and Equity Section Preparation) For a recent 2-year period, the balance sheet of Santana Dotson Company showed the following stockholders’ equity data on December 31 (in millions). 20172016Additional paid-in capital$931$ 817Common stock545540Retained earnings7,1675,226Treasury stock1,564918 Total stockholders’ equity$7,079$5,665Common stock shares issued218216Common stock shares authorized500500Treasury stock shares3427InstructionsAnswer the following questionsWhat is the par value of the common stock?What is the cost per share of treasury stock on December 31, 2017, and on December 31, 2016?Prepare the stockholders’ equity section on December 31, 2017.

The par value is $2.50, and the total stockholder equity is$7,079. The cost per share of 2017 and 2016 are $46 and$36, respectively.

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## Meaning of stockholders’ Equity

Shareholders’ equity is generally the value of assets that a company has left after meeting its liabilities. The amount can be estimated by subtracting total liabilities from total assets.