Presented Below Is the Stockholders' Equity Section of Oaks Corporation

question 47

Multiple Choice

Presented below is the stockholders' equity section of Oaks Corporation at December 31, 2014: During 2015, the following transactions occurred relating to stockholders' equity:3,000 shares were reacquired at $28 per share.3,000 shares were reacquired at $35 per share.1,800 shares of treasury stock were sold at $30 per share.For the year ended December 31, 2015, Oaks reported net income of $450,000. Assuming Oaks accounts for treasury stock under the cost method, what should it report as total stockholders' equity on its December 31, 2015, balance sheet?

• A) $1,865,000.
• B) $1,861,400.
• C) $1,857,800.
• D) $1,415,000.

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Definitions:

Assumed Liabilities

Obligations that a company takes on when it purchases another company or its assets.

Acquiring Assets

The process of obtaining ownership or control of assets, which can include tangible property like real estate or intangible property like intellectual property rights.

Dissenting Shareholder Rights

Rights granted to shareholders who disagree with major corporate actions, like mergers, allowing them to receive payment for the fair value of their shares.

Merger Approval

The authorization granted by a regulatory body or shareholders for two or more companies to consolidate into one entity.