14.1 Par value of common shares must be $1 x 100,000 shares = $100,000. Additional paid-in capital is ($15 - $1) x 100,000 $1,400,000. Since book value is $4,500,000, retained earn- ings must be $3,000,000. Therefore, the accounts look like this:

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Common shares ($1 par value per share) $100,000 Additional paid-in capital 1,400,000 Retained earnings 3,000,000 Net common equity $4,500,000