At the beginning of the year, paid-in capital was $82 and retained earnings was $47. During the year, the stockholders invested $24 and dividends of $6 were declared and paid. Retained earnings at the end of the year were $52. Total stockholders' equity at the end of the year was:
A) $82
B) $94
C) $106
D) $158

Question

Quizplus · Accepted Answer

Total stockholders' equity at the end of the year is calculated by adding the ending retained earnings to the total paid-in capital. The ending retained earnings is $52, and the paid-in capital at the end of the year is the initial $82 plus the additional investment of $24, totaling $106. Therefore, total stockholders' equity is $106 (paid-in capital) + $52 (retained earnings) = $158.

At the Beginning of the Year, Paid-In Capital Was $82