The bookkeeper of Hart Company has prepared the following incorrect statement of stockholders' equity for the year ended December 31, 1998 :

The authorized stock consists of 12,000 shares of preferred stock with a \(\$ 120\) par value and 75,000 shares of common stock, \(\$ 48\) par value. The preferred stock was issued on two occasions: (1) 5,000 shares at par, and (2) 3,000 shares at \(\$ 134.40\) per share. The 50,000 shares of common stock were issued at \(\$ 62.40\) per share. Five thousand shares of treasury common stock were reacquired for \(\$ 264,000\). The bookkeeper deducted the cost of the treasury stock from the Common Stock account.

Prepare the correct stockholders' equity section of the balance sheet at December 31, 1998.

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Stockholders' equity: Paid-in capital: Preferred stock-6%, cumulative (8,000 shares) $1,003,200 Common stock-50,000 shares 2.856,000 Total paid-in capital Retained earnings Total stockholders' equity $3,859,200 1,636,800 $5,496,000