ABC issued 10,000 common shares with a par value of $ 5 and a market value of $ 25 per share along with 15,000 preferred shares with an par value of $ 15 and a market value of $ 20 per share. Both shares were issued for a total (price included) of $ 530,000. How much of the $ 530,000 must be allocated to common shares? a. 240,909 b. 281,563 c. $250,000 d. 284,091

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.