Review Illustration 18-1 on page 1081 in the downloadable or hardcopy text (Chapter 18, sixth edition). This is a detailed sample stockholders’ equity section of the balance sheet for Exposition Corporation.
Discuss the items and item descriptions that you find in this section. For example, the first item is preferred stock. What is preferred stock? What makes it different from common stock? How is the dollar amount shown for preferred stock determined? What is par value? Why is the preferred par value set at $10?