Reference no: EM132784021

Mart Company's post-closing trial balance at December 31, 2007 appear as follows:

Accounts payable and accrued liabilities 3,000,000

Accounts receivable 6,000,000

Accumulated depreciation 2,500,000

Allowance for doubtful accounts 800,000

Bonds payable 5,000,000

Property, plant and equipment 11,000,000

Cash 2,500,000

Common stock (P50 par value) 6,000,000

Dividends payable 200,000

Inventory 8,000,000

Available for sale securities (AFS) 3,500,000

Investment in equity securities at cost 2,000,000

Unrealized loss on AFS securities 500,000

Additional paid in capital - common In excess of par 5,000,000

From sale of treasury stock 1,000,000

Preferred stock (P25 par value) 5,000,000

Retained earnings 6,500,000

Treasury stock - common, at cost 1,500,000

At December 31, 2007, Mart had the following number of common and preferred shares:

Common Preferred Authorized 300,000 300,000

Issued 120,000 200,000

Outstanding 100,000 200,000

The dividend on preferred stock is 10% cumulative.

Problem 1: The preferred stock has a preference in liquidation of P50 per share. What is the total stockholders' equity on December 31, 2007?