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Newton Corporation was organized on January 1, 2017. On that date, it issued 200,000 shares of its $10 par-value common stock

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Answer #1

Share Holder's Equity

Paid up share capital =200000*10

=20,00,000

Securities premium=2,00,000*5

=10,00,000

Net income after dividend=7,50,000-3,80,000

=3,70,000

Less:Treasury stock at par value=8,000*10=80,000

Equity share holders Fund=20,00,000+10,00,000+3,70,000-80,000

=32,90,000

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