3. 4. On March 3, Colton Corporation has a Common Share account balance of $200,000, and has 20,000 shares issued. For the first time ever, Colton reacquired and cancelled 1,000 of its common shares, paying $12 a share. Dagmar Corporation has 10,000 convertible preferred shares that were issued for a total of $500,000. Each preferred share is convertible into 3 common shares. On April 8, when the market values of the preferred and common shares are $60 and $24 respectively, 2,000 preferred shares are converted