Newton Corporation was organized on January 1, 20X1. On that date, it issued 200,000 shares of its $10 par value common stock at
$15 per share (400,000 shares were authorized). During the period from January 1, 20X1, through December 31, 20X3, Newton
reported net income of $750,000 and paid cash dividends of $380,000. On January 5, 20X3, Newton purchased 12,000 shares of its
common stock at $12 per share. On December 31, 20X3, the company sold 8,000 treasury shares at $8 per share.
Required:
What is the book value of total shareholders' equity as of December 31, 20X3?
Answer is complete but not entirely correct.
Total shareholders' equity
$ 3,322,000×
