A Corporation Had the Following Account Balances on Its December

Multiple Choice

A corporation had the following account balances on its December 31, year 1, and post-closing trial balance: $$\begin{array} { | l | l | } \hline \text { Common shares } & \$ 1,000 \\\hline \text { Preterred shares } & 760 \\\hline \text { Appropriated for future plant expansion } & 200 \\\hline \text { Unappropriated retained earnings } & 100 \\\hline \text { Bond sinking fund } & 80 \\\hline\end{array}$$ Additional information: During the year a $50 cash dividend on preferred shares and a $50 cash dividend on common shares were declared. At December 31, year 1, total stockholders' equity is:

A) $2,140
B) $2,060
C) $2,040
D) $1,940