Early in $2020,$ Herndon Industries was formed with authorization to issue $250,000$ shares of $$10$ par value common stock and

$30,000$ shares of $$100$ par value cumulative preferred stock. During $2020,$ all the preferred stock was issued at par, and

$120,000$ shares of common stock were sold for $$16$ per share. The preferred stock is entitled to a dividend equal to $10$

percent of its par value before any dividends are paid on the common stock.

During its first five years of business $(2020$ through $2024),$ the company earned income totaling $$3,700,000$ and paid

dividends of $50$ cents per share each year on the common stock outstanding.

On January $2,2022,$ the company purchased $20,000$ shares of its own common stock in the open market for $$400,000.$ On

January $2,2024,$ it reissued $10,000$ shares of this treasury stock for $$250,000.$ The remaining $10,000$ were still held in

treasury at December $31,2024.$

Required:

a$.$ Prepare the stockholders' equity section of the balance sheet for Herndon Industries at December $31,2024.$

b$.$ As of December $31,2024,$ compute Herndon's book value per share of common stock. $($Hint: Book value per share is

computed only on the shares of stock outstanding.$)$

c$.$ At December $31,2024,$ shares of the company's common stock were trading at $$30.$ What would have happened to the

market price per share had the company split its stock $3-$for$-1$ at this date. What would have happened to the par value of

the common stock and to the number of common shares outstanding.

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Prepare the stockholders' equity section of the balance sheet for Herndon Industries at December $31,2024.$