At the beginning of 2014, Taylor Corporation had the following stockholders equity balances in its general ledger: Common Stock, $10 Par Value $2,500,000 Paid-In Capital in Excess of Par 1,500,000 Pain-In Capital, Treasury Stock 450,000 Paid-In Capital, Stock Options 200,000 Retained Earnings 5,000,000 Treasury Stock (15,000 shares) (300,000) Total Stockholders Equity $9,350,000 The paid-in capital from stock options relates to options granted on 1/1/12 to the CEO as incentive compensation. As of 1/1/14, the remaining expected benefit period is four years; expense has been and will be recorded evenly over the benefit period. The following events were among the many occurring in 2014: a. January 2: Purchased 5,000 shares of its common stock for $16 per share. Taylor uses the cost method of accounting for treasury stock transactions. b. February 1: Declared and paid a cash dividend of $2 per share on the outstanding common stock. c. April 1: Issued 20,000 shares of $50 par, noncumulative, convertible 6% preferred stock for $60 per share, where one share of preferred stock is convertible into three shares of common stock. d. July 1: 2,000 shares of treasury stock that had been purchased in a prior year for $21 per share were re-issued for $22 per share. e. August 1: Holders of 8,000 shares of the preferred stock converted their shares into common stock when the market value of the common stock was $22 per share. Taylor uses the book value method of accounting for conversions. f. October 1: Declared and distributed a 1% stock dividend on common stock outstanding when the market price of the stock was $24 per share. g. November 1: Corrected an error that was made several years ago, when land that had been purchased for $100,000 was inadvertently expensed. h. December 1: Declared and distributed a property dividend of land to preferred shareholders. The land had a fair value of $60,000 and a carrying value of $75,000. i. December 31: Recorded 2014 compensation expense related to the stock options. The 2014 Final Net Income, including the effects of any net income items listed above (and the 2014 tax effects on net income items), was $1,000,000. There were 500,000 shares authorized for both preferred and common stock