For a recent 2-year period, the balance sheet of Carla Company showed the following stockholders’ equity data at December 31 (in millions).     2020   2019 Additional paid-in capital   $ 970   $ 827 Common stock   560   555 Retained earnings   7,250   5,280 Treasury stock   1,620   868    Total stockholders’ equity   $7,160   $5,794           Common stock shares issued   224   222 Common stock shares authorized   500   500 Treasury stock shares   36   28 (a) Answer the following questions.(1) What is the par value of the common stock? (Round par value to 2 decimal places, e.g. $3.15.) Par value of common stock   $enter the par value of the common stock rounded to 2 decimal places (2) What is the cost per share of treasury stock at December 31, 2020, and at December 31, 2019?     December 31, 2020   December 31, 2019 Cost per share of Treasury stock   $enter a dollar amount   $enter a dollar amount (b) Prepare the stockholders’ equity section at December 31, 2020.

Question

For a recent 2-year period, the balance sheet of Carla Company showed the following stockholders’ equity data at December 31 (in millions).

   
2020
 
2019
Additional paid-in capital
  $ 970   $ 827
Common stock
  560   555
Retained earnings
  7,250   5,280
Treasury stock
  1,620   868
   Total stockholders’ equity
  $7,160   $5,794
         
Common stock shares issued
  224   222
Common stock shares authorized
  500   500
Treasury stock shares
  36   28


(a) Answer the following questions.

(1) What is the par value of the common stock? (Round par value to 2 decimal places, e.g. $3.15.)

Par value of common stock   $enter the par value of the common stock rounded to 2 decimal places


(2) What is the cost per share of treasury stock at December 31, 2020, and at December 31, 2019?

   
December 31, 2020
 
December 31, 2019
Cost per share of Treasury stock
  $enter a dollar amount   $enter a dollar amount


(b) Prepare the stockholders’ equity section at December 31, 2020.

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