Question

Drake Co. summarized select account balances on December 31, 2020, and activity for 2020 in the...

Drake Co. summarized select account balances on December 31, 2020, and activity for 2020 in the following table.

Retained earnings, beginning balance $60,000
Common stock, $1 par, 100,000 shares authorized, 50,000 shares issued 40,000
Treasury stock, 1,000 shares 10,500
Paid-in capital in excess of par 440,000
Accumulated other comprehensive income 25,000
Investment in stock 100,000
Bonds payable 50,000
Net income for 2020 (not included in retained earnings above) 12,000
Dividends declared and paid during 2020 (not included in retained earnings above) 5,000
Noncontrolling interests 2,500


Based on the information provided, what is total stockholders’ equity on December 31, 2020?

Select one:

a. $559,000

b. $585,000

c. $564,000

d. $574,000

Business   Accounting   
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Answer #1
Retained earnings, beginning balance 60000
Add: Net income for 2020 12000
Less: Dividends declared and paid during 2020 -5000
Retained earnings, ending balance 67000
Common stock, $1 par 40000
Paid-in capital in excess of par 440000
Accumulated other comprehensive income 25000
Retained earnings, ending balance 67000
Less: Treasury stock, 1,000 shares -10500
Noncontrolling interests 2500
Total stockholders’ equity on December 31, 2020 564000
Option C $564,000 is correct
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