Ferris Company Reported the Following on Its Balance Sheet: Total

Multiple Choice

Ferris Company reported the following on its balance sheet: total contributed capital of $186,000,treasury stock of $19,500 and total stockholder's equity of $237,500.Ferris had 1,000,000 authorized shares of its $0.01 par value common stock of which 200,000 were outstanding. During the following year,Ferris Company earned net income of $75,000,issued 5,000 shares of $1 par common stock at an average market price of $44 per share,and declared dividends of $20,500.What amount was the total stockholder's equity reported on the balance sheet at the end of that year?

A) $512,000
B) $406,000
C) $297,000
D) $532,500