$($Analysis and Classification of Equity Transactions$)$ Beniluz Company

was formed on July $1,2021.$ It was authorized to issue $1,000,000$ shares of $$5$ par value common stock

and $200,000$ shares of $4\%$ $$100$ par value, cumulative and nonparticipating preferred stock. Beniluz

Company has a July $1-$June $30$ fiscal year.

The following information relates to the stockholders$$ equity accounts of Beniluz Company:

Common Stock

Prior to the $2025-26$ fiscal year, Beniluz Company had $304,000$ shares of outstanding common stock

issued as follows:

$1.220,000$ shares were issued for cash on July $1,2021,$ at $$24$ per share.

$2.$ On August $4,2023,24,000$ shares were exchanged for an office building and warehouse which cost

the seller $$431,000$ in $1998$ and had an estimated fair value of $$627,000$ on August $4,2023.$

$3.60,000$ shares were issued on November $1,2024,$ for $$29$ per share.

During the $2025-26$ fiscal year, the following transactions regarding common stock took place:

August $31,2025$ Beniluz purchased $5,000$ shares of its own stock on the open market at $$30$ per

share.

Beniluz uses the cost method for treasury stock.

December $1,2025$ Beniluz declared a $6\%$ stock dividend for stockholders of record on December $20,$

$2025,$ to be issued on January $15,2026.$ Beniluz was having a liquidity problem

and could not afford a cash dividend at the time. Beniluz $$s common stock was

selling at $$28$ per share on December $1,2025.$

June $20,2026$ Beniluz sold $1,500$ shares of its own common stock that it had purchased on

August $31,2025$ for $$36,000.$