Answer:
$1,000,000
Explanation:
Stockholders' Equity = Common stock + Excess paid-in Capital + Retained Earnings - Treasury stock.
= $750,000 + $50,000 +$175,000 - $25,000
= $1,000,000
Note the following:
Treasury stock refers to the shares that the issuing company buys back; this reduces the number of shares outstanding on the open market. The value of treasury stock is thus deducted while computing the value of Stockholders' Equity.
