Accounting forShareholders’ Equity Transactions
The shareholders’ equity section of the balance sheet of TheClaremont Company appeared as follows at the end of the first yearof operations:

Common stock, $0.1 par value	$600,000
Additional paid-in-capital	89,400,000
Retained earnings	32,000,000
Treasury stock	(7,500,000)
Shareholders’ equity	$114,500,000

During the second yearof operations, the following transactions occurred:

1. Generated netincome of $6 million.

2. Paid a cashdividend of $1.5 million.

3. Purchased 100,000shares of common stock at $9.5 per share.

4. Executed a 1-for-2reverse stock split.

Prepare theshareholders’ equity section of the balance sheet of ClaremontCompany at the end of the second year of operations. Please showall work.

The Claremont Company Stockholders’ Equity December 31, Year 2
Common stock, par value	$Answer
Additional paid-in-capital	Answer
Retained earnings	Answer
Treasury stock	Answer
Total shareholders’ equity	$Answer