SKN Corporation began operations in 1999. Calculate the balances in each component of shareholders’equity at the end of 1999, after recognizing the following transactions:

1. Issue two million shares of $10.00 par value common stock at a price of

$25.00.

2. Incur high R&D costs and show a net loss on its 1996 income statement of

$1,500,000.00.

3. Issue four million shares of $25.00 preferred stock at a price of $30.00.