a. Hoyle Corporation has issued 100,000 shares of $5 par value common stock. It was authorized 500,000 shares. The paid-in capital in excess of par value on the common stock is $263,000. The corporation has reacquired 7,000 shares at a cost of $46,000 and is currently holding those shares. It also had accumulated other comprehensive income of $67,000. The corporation also has 2,000 shares issued and outstanding of 9%, $100 par value preferred stock. It was authorized 10,000 shares. The paid-in capital in excess of par value on the preferred stock is $23,000. Retained earnings is $372,000. Prepare the stockholders’ equity section of the balance sheet. 

b. On January 1, 2022, Vahsholtz Corporation purchased 5,000 shares of treasury stock. Other information regarding Vahsholtz Corporation is provided as follows. 

Compute (i) return on common stockholders’ equity for each year, and (ii) discuss the changes in each.

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2022 2021 Net income Dividends on preferred stock Dividends on common stock Weighted-average number of common shares outstanding Common stockholders' equity beginning of year Common stockholders' equity end of year $110,000 $100,000 $ 30,000 $ 20,000 50,000 $600,000 $750,000 $ 25,000 $750,000 $830,000