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23 June, 10:16

Houghton Company has the following items: common stock, $1,790,000; treasury stock, $210,000; income taxes payable, $280,000; and retained earnings, $870,000. What is the total amount Houghton Company should report as shareholders' equity?

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  1. 23 June, 13:15
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    Answer:$2,450,000

    Explanation:

    The common stock net of the treasury stock is captured as equity.

    The tax payable of $280,000 is a liability and not equity.

    $1,790,000-$210,000+$870,000 = $2,450,000
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