Newton Corporation was organized on January 1, 2017. On that date, it issued 200,000 shares of its $10 par-value common stock at $15 per share (400,000 shares were authorized). During the period from January 1, 2017, through December 31, 2019, Newton reported net income of $750,000 and paid cash dividends of $380,000. On January 5, 2019, Newton purchased 12,000 shares of its common stock at $12 per share. On December 31, 2019, the company sold 8,000 treasury shares at $8 per share. Required:
What is the book value of total shareholders’ equity as of December 31, 2019?

$30,290,000

Explanation:

Calculation for the book value of total shareholders’ equity as of December 31, 2019

First step is to calculate the Paid up share capital

Paid up share capital =200000*10

Paid up share capital=20,00,000

Second step is to calculate the Securities premium

Securities premium=2,00,000*5

Securities premium=10,00,000

Third step is to calculate the Net income after dividend

Net income after dividend=750,000-3,80,000

Net income after dividend=370,000

Fourth step is to calculate the Treasury stock at par value

Treasury stock at par value =8,000*10

Treasury stock at par value=80,00

Now let calculate the total shareholders’ equity as of December 31, 2019

Total Equity share holders Fund=20,00,000+10,00,000+370,000-80,000

Total Equity share holders Fund=$30,290,000

Therefore the book value of total shareholders’ equity as of December 31, 2019 is $30,290,000

a and c

explanation:

answer; interviews;