1) The total increase in liabilities and stockholder's equity is caused by the most items of liabilities, and equity.

2) Because of the separation enterprise's ownership and actual control, manager control enterprise who may pursue interests by way of damaging stockholder's equity is not been supervised.

3) The comparative balance sheet in Exhibit 12-1 show that the total assets and total liabilities and stockholder's equity have risen during the past year by $60, or 6%.

4) However, the shareholders' meeting is still paid attention to a great deal of fields of the company law, particularly in protecting medium and small stockholder's equity and company's interests.

5) Expensing the bonus shares is just changes the record from Stockholder's equity statement to Income statement. The different accounting methods should not affect the firm value.

6) Treasury stock is reacquired by the corporation and has not been written off. Its nature is a reduction of stockholder's equity.