Accounting for Shareholders' Equity Transactions The shareholders' equity section of the balance sheet of The Claremont Company appeared as follows at the end of the first year of operations: Common stock, $0.04par value $240,000 Additional paid-in-capital 35,760,000 Retained earnings 12,800,000 Treasury stock (3,000,000) Shareholders' equity $45,800,000 During the second year of operations, the following transactions occurred: 1. Generated net income of $2.4 million. 2. Paid a cash dividend of $0.6 million. 3. Purchased 100,000 shares of common stock at $3.8 per share. 4. Executed a 1-for-2 reverse stock split. Prepare the shareholders' equity section of the balance sheet of Claremont Company at the end of the second year of operations. Use a negative sign with treasury stock answer. 0 The Claremont Company Stockholders' Equity December 31, Year 2 Common stock, par value $ Additional paid-in-capital Retained earnings Treasury stock Total shareholders' equity $ 0 0 0 0