Mutyala, Inc., reported the following statement of stockholders' equity for the year ended June 30, 19X6:

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Answer these questions about Mutyala's stockholders' equity transactions.

1. The income tax rate is 35 percent. How much income before income tax did Mutyala, Inc., report on the income statement?
2. What is the par value of the company's common stock?
3. At what price per share did Mutyala issue its common stock during the year?
4. What was the cost of treasury stock sold during the year? What was the selling price of the treasury stock sold? What was the increase in total stockholders' equity?
5. Mutyala's statement of stockholders' equity lists the stock transactions in the order in which they occurred. What was the percentage of the stock dividend? Round to the nearest percentage.

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MUTYALA, INC. STATEMENT OF STOCKHOLDERS' EQUITY YEAR ENDED JUNE 30, 19X6 Additional Common Paid-in Retained Treasury (Dollar amounts in millions) Stock Capital Earnings Stock Total Balance, July 1, 19X5. $173 $2,118 $1,706 S (18) $3,979 Net income.... 520 520 Cash dividends (117) (117) Issuance of stock (5,000,000 shares).. 3 46 49 Stock dividend.... 18 272 (290) Sale of treasury stock 5 11 16 Balance, June 30, 19X6. $194 $2,441 $1,819 $ $4,447