Bikroy.com Inc. had the following shareholders equity on January 1, 2020. Preferred shares, 8%, $100 par value, 10,000 shares authorized, 4,000 shares issued $ 400,000 Common shares, $2 par value, 200,000 shares authorized, 80,000 shares issued 160,000 Common shares subscribed, 10,000 shares 20,000 Contributed surplus - Preferred 940,000 Contributed surplus - Common 780,000 Retained Earnings 780,000 2,320,000 Less: Common share subscriptions receivable 40,000 Total shareholders equity $2,280,000 During 2020, the following transactions occurred. 1. Equipment was purchased in exchange of 500 shares of common stock. The shares market value on the exchange date was $12 per share. 2. Sold 1,000 shares of common stock and 100 shares of preferred stock for the lump-sum price of $27,000. The common shares had a market price of $16 at the time of the sale. 3. Sold 2,000 shares of preferred for cash at $104 per share 4. All of the subscribers paid their subscription prices into the firm. 5. The common shares were issued. 6. Repurchased and retired 1,000 common shares at $17 per share 7. Net Income for the year was $560,000. Prepared the shareholders equity section for the company as at December 31, 2020. [4 Marks]