Stockholders’ Equity and Dividends Atlantic Trading Company operates on a calendar-year basis. At the start of the year, it had 480,000 shares of $5 par common stock issued, with 480,000 shares outstanding. A total of 1,000,000 shares of common stock is authorized. The company had originally issued its common stock for $20 per share. In addition, Atlantic has 100,000 shares of $100-par, 8 percent preferred stock authorized, issued, and outstanding. The shares were issued several years ago at $102 per share. In February, the company declared a 10 percent stock dividend on the common stock when the price of the stock was $30 per share. On December 1, the board of directors declared the normal annual dividend on the preferred stock, payable on December 31, to stockholders of record December 16. On December 1, the board of directors also declared a cash dividend of $1 per share on the common stock, payable next January 5 to stockholders of record December 27. At the end of last year, Atlantic had reported retained earnings of $4,993,655. Atlantic computes its current year’s net income as $1,531,760.

a. Prepare the stockholders’ equity section of Atlantic’s balance sheet as of the end of the year.

b. On December 26, Peter Li purchases 1,000 shares of Atlantic’s common stock in the open market. What is the amount of the cash dividend that Peter will receive from those shares on January 5? Explain your answer.