he following information applies to the questions displayed below.] Nautical has two classes of stock authorized: $10 par preferred, and $1 par value common. As of the beginning of 2018, 125 shares of preferred stock and 3,000 shares of common stock have been issued. The following transactions affect stockholders' equity during 2018: March 1 Issue 3,000 additional shares of common stock for $10 per share April 1 Issue 175 additional shares of preferred stock for $40 per share. June 1 Declare a cash dividend on both common and preferred stock of $0.25 per share to a stockholders of record on June 15. June 30 Pay the cash dividends declared on June August 1 Purchase 175 shares of common treasury stock for $7 per share October 1 Reissue 125 shares of treasury stock purchased on August 1 for $9 per share Nautical has the following beginning balances in its stockholders' equity accounts on January 2018: Preferred Stock, $1,250; Common Stock, $3,000; Additional Paid-in Capital, $19,500; and Retained Earnings. $11,500. Net income for the year nded December 31, 2018. is $7.850