At the beginning of 2019, Thompson's service Inc. showed the following amounts in the stock holder's equity section of its balance sheet. Stock holders' equity: Cumulative 8% Preferred Stock, $100 par value, 8,000 shares issued Non-cumulative 7% Preferred Stock $100 par value, 3000 shares issued Capital stock, $10 par value 500,000 shares authorized 250,000 issued and outstanding Additional paid in capital: capital stock Total paid in capital Retained earnings Total stockholders' equity $ 800,000 300,000 2,500,000 4,202,000 7,802,000 3,104,200 10,906,200 The transactions relating to stockholders equity during the year 2019 are as follows: Feb 2 The board approves a 5 for 4 stock split for common stock. Apr 12 The Corporation purchased 6,000 share of its own capital stock at a price of $20 per share. May 9 Reissued 4,000 shares of the treasury stock at a price of $24 per share. June 1 Declared a 5% stock dividend to stockholders of record at June 15, to be distributed on June 30. The market price of the stock at June 1 was $25 per share. June 30 Distributed the stock dividend declared on June 1. Dec 22 Declared and paid a total cash dividend of $ 240,000 to all shareholders. Net income for the year amounted to $730,000. (Dividend for past two years were not paid by the company in those years.) 5. Retained earnings balance at the year end will be?? a. $3,446,075 b. $3,206,075 C. $2,476,075 d $2,062,100 6. What amount of treasury shares will be reported in stock holder's equity at the year end? a. $120,000 b. $48,000 C. $40,000 d. $80,000 7. How much dividend will common stock holders receive? a $180,000 b. $27,000 C. $240,000 d. $91,000