1 Required information [The following information applies to the questions displayed below.] The stockholders' equity of TVX Company at the beginning of the day on February 5 follows. Common stock-\$5 par value, 150,000 aharea authorized, 56,000 shares issued and outstanding paid-in capital in excess of par value, common stock Retained earnings Total stockbolderi" equity $280,000 421,000 $1,247,000$46,000 On February 5, the directors declare a 2% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock's market value is $41 per share on February 5 before the stock dividend. 2. Prepare the stockholders' equity section after the stock dividend is distributed. (Assume no other changes to equity) In Draco Corporation's first year of business, the following transactions affected its equity accounts. - Issued 8,000 shares of $2 par value common stock for $58. It authorized 20,000 shares. - Issued 2,000 shares of 12\%,\$10 par value preferred stock for \$63, It authorized 3,000 shares. - Reacquired 400 shares of common stock for $70 each. - Retained earnings is impacted by reported net income of $90,000 and cash dividends of $35,000. Prepare the stockholders' equity section of Draco's balance sheet as of December 31. (Amounts to be deducted should be indicated by a minus sign.)