E $2-9$

Calculate income and investment balance when investee capital structure includes preferred stock

Run Company had net income of $$400,000$ and paid dividends of $$200,000$ during $2012.$ Run's stockholders' equity on December $31,2011,$ and December $31,2012,$ is summarized as follows $($in thousands$)$:

$\backslash$table$[[,$December $31,2011,$December $31,2012],[10\%$ cumulative preferred stock, $$100$ par,$$300,300],[$Common stock, $$1$ par,$1,000,1,000],[$Additional paid$-$in capital,$2,200,2,200],[$Retained earnings,$500,700],[$Total stockholders' equity,$$4,{000}_{?},$$$4,{200}_{?}$