Use the Incomplete Stockholders' Equity Section of Box Company's Balance

question 78

Multiple Choice

Use the incomplete Stockholders' Equity section of Box Company's balance sheet as of December 31,2017,to answer the following question. ?
$\begin{array}{lr}\text { Common stock } \$ 7 \mathrm{par}, 100,000 \text { shares authorized } & \$ 700,000 \\\text { Additional paid-in capital—common } & 160,000 \\\text { Retained earnings } & ? \\\text { Treasury stock ( } 2,000 \text { shares at cost) } & (16,000) \\\text { Total stockholders' equity } & 974,000\end{array}$
How many shares of common stock are outstanding?

• A)100,000
• B)98,000
• C)78,000
• D)68,000

Understand how government interventions like taxes and subsidies impact market efficiency and resource allocation.

Identify the conditions necessary for a market to achieve allocative efficiency.

Explain the concept of efficiency loss (deadweight loss) and its causes in a market.

Distinguish between positive and negative externalities and their impact on social welfare.

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Definitions:

Funeral Services

A ceremony or group of ceremonies held in connection with the burial or cremation of a deceased person.

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Cease-and-desist Order

A legal injunction demanding that an individual or organization stop a specified activity and refrain from engaging in it in the future.

Federal Trade Commission

A U.S. government agency established to protect consumers and ensure a strong competitive market by enforcing antitrust and consumer protection laws.