Adam Corporation was incorporated on January 1, year 1, with the following authorized capital:

20,000 shares of common stock, no par value, stated value $40 per share

5,000 shares of 5% cumulative preferred stock, par value $10 per share

During year 1 , Adam issued 12,000 shares of common stock for a total of $600,000 and 3,000 shares pf preferred at $16 per share. In addition, on December 20, subscriptions for 1,000 shares of preferred were taken at a price of $17 per share. These shares were paid for on January 2, year 2. What should Adam report as contributed capital on December 31, year 1?

1. $648,000
2. $665,000
3. $520,000
4. $850,000