Raun Company had the following equity items as of December 31, 2019:
Preferred stock, 9% cumulative, $100 par, convertible
Paid-in capital in excess of par value on preferred stock
Common stock, $1 stated value
Paid-in capital in excess of stated value on common stock
Retained earnings
The following additional information about Raun was available for the year ended December 31, 2019:
1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for $120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019.
2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years.
3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the market price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from $47 to $83 a share. Options for 20,000 shares were exercised at $47 to $79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at $86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at $54 to $86 a share; of these, 30,000 were exercisable at that date at prices ranging from $54 to $79 a share.
4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of $87 a share. All 60,000 shares were paid for and issued late in September 2019.
5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders’ equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid.

Required:
Prepare the shareholders’ equity section of Raun’s balance sheet at December 31, 2019. Substitute, where appropriate, X’s for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the published financial statements.