Answer:
Techstar, Inc.’s total stockholders’ equity is $175,000
Explanation:
Total equity is the total value of all paid-in-capital balance and accumulated earning and any other reserves. Stocks are issued on a price which includes the price at par value and price over par value, both of these are recorded separately.
Number of shares issued = 15,000 shares
Issuance Price = $5
Par value = $1
Equity Section of Balance sheet
Paid-In-Capital at par ($1 x 15000) $15,000
Paid-In-Capital excess of par (($5-$1) x 15,000) $60,000
Retained earning $100,000
Total Stockholder's Equity $175,000
