Upon issuance, common stock is generally recorded at its fair value, which is typically the amount of proceeds received. Capital stock is the number of common and preferred shares that a company is authorized to issue, and is recorded in shareholders' equity.Our last year turbo tax all of a sudden added capital stock. The Comprehensive Annual Financial Report (CAFR) of the County of Contra Costa (county) for fiscal year 2007. A capitalized cost is an expense that is added to the cost basis of a fixed asset on a company's balance sheet. Part XI Reconciliation of Revenue per Audited Financial Statements With Revenue per Return. The formula for calculating capital stock on balance sheet is straightforward. Letter to the Board of Supervisors and Citizens of Contra Costa County . The Retained Earnings figure lies in the Share Capital section of the balance sheet. The financial statements present the Authority's financial activity within the Capital Projects Fund. 15.