8% $10 par preferred stock, 10,000 shares authorized and issued $100,000

$5 par common stock, 10,000 shares authorized, 4,000 shares issued $20,000

Paid-in capital in excess of par:

Common Stock $8,000

Preferred Stock $12,000

Retained Earnings $75,000

Given the above stockholder's equity section, what is the company's minimum legal capital (legal liability)?

Multiple Choice

• $20,000

• $28,000

• $140,000

• $120,000