Determining Equity Balances The stockholders’ equity section of Tab Company’s balance sheet appears as follows:

Required:

a. At what average price per share was Tab’s common stock issued?

b. What dollar amount should be reported for:
1. Preferred Stock?
2. Retained Earnings?
3. Treasury Stock?

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Preferred stock ($5 par: 500.000 shares authorized, none issued) Common stock ($1 par: 2,000,000 shares authorized, 800.000 issued and outstanding) Additional paid-in capital Retained earnings ? 800,000 2,200,000 ? Less treasury stock Total stockholders' equity $3,650,000