E11.21 (LO 4), AP Dirk Company reported the following balances at December 31,2021 : common stock $500,000, paid-in capital in excess of par-common stock $100,000, and retained earnings $250,000. During 2022, the following transactions affected stockholders' equity. 1. Issued preferred stock with a par value of $125,000 for $200,000. 2. Purchased treasury stock (common) for $40,000. 3. Earned net income of $180,000. 4. Declared and paid cash dividends of $56,000. Instructions Prepare the stockholders' equity section of Dirk Company's December 31, 2022, balance sheet. Prepare an income statement and compute return on equity