1. Assume the actuary estimates the net cost of providing health care benefits to a particular employee during his retirement years to have a present value of $63,000. If the benefits relate to an estimated 25 years of service and five of those years have been completed:

2. Roberto Corporation was organized on January 1, 2016. The firm was authorized to issue 87,000 shares of $5 par common stock. During 2016, Roberto had the following transactions relating to shareholders' equity:

Issued 9,300 shares of common stock at $5.50 per share.

Issued 19,900 shares of common stock at $9.60 per share.

Reported a net income of $92,000.

Paid dividends of $54,000.

Purchased 3,700 shares of treasury stock at $11.60 (part of the 19,900 shares issued at $9.60).

What is total shareholders' equity at the end of 2016?

3. On October 1, 2016, Chief Corporation declared and issued a 15% stock dividend. Before this date, Chief had 85,000 shares of $5 par common stock outstanding. The market value of Chief Corporation on the date of declaration was $10 per share. As a result of this dividend, Chief's retained earnings will: