Presented below is the stockholders equity section of AMR Corporation.
All amounts are in million except for number of shares and par value
| Stockholders' Equity (Deficit) |
Current
Year |
Prior
Year |
| Preferred stock-20,000,000 shares authorized; none issued |
$ -0- |
$ -0- |
| Common stock-$1 par value; 750,000,000 shares authorized; 182,350,259 shares issued |
182 |
182 |
| Additional paid-in capital |
2,521 |
2,605 |
| Treasury shares at cost: current year-21,194,312; prior year-22,768,027 |
(1,308) |
(1,405) |
| Accumulated other comprehensive loss |
(664) |
(785) |
| Accumulated deficit |
(1,312) |
(551) |
|
$ (581) |
$ 46 |
- Explain why the common stock is classified as part of the stockholder's equity.
- Explain why treasury stock is not classified as an asset.
- Explain what is meant by "Accumulated other comprehensive loss."
- Why is the accumulated deficit larger in the current year than in the prior year?
- Compute book value per share for AMR for the current year.