1. Fort Davis Drug Co. was formed last year by selling 650,000 shares of common stock and the balance sheet for the firm shows a common stock amount of $3,087,500. What is the par value of the stock? If paid-in capital in excess of par is $14.65 million, what was the original price of the stock? If total equity is now $18 million, how much is retained earnings? 2. The Rankin Roofing Co. was formed last year by selling 2.3 million shares of stock at a price of $18.50 with a par of $1.50. In its first year, the firm made a net profit of $4.2 million and paid dividends of S.15 per share. Construct the equity section of the balance sheet for the company at the end of the first year et te 3. The Hill Co. bought a machine 2 /2 years ago for $66,000 with an estimated life of 6 years. The company uses straight-line depreciation methods and estimated a zero salvage value on the machine. The machine was just sold for $34,000. What taxable gain or loss should be reported on the sale of the machine? (and state if it is a gain or loss) If the firm has a 30% tax rate, what are the taxes or tax savings from with this sale (and state whether it is taxes or tax savings)2