Herrera Manufacturing Corporation completed the following transactions during its first year of operation, 2016 1. The state authorized the issuance of 30,000 shares of $5 par common stock; 15,000 shares were issued at $22 per share 2. The state authorized the issuance of 6,000 shares of $50 par preferred stock. AIl 6,000 shares were issued at $70 per share 3. Herrera reacquired 1,000 shares of its outstanding common stock at $18 per share. The cost method is used to account for treasury stock. 4. Herrera invested $50,000 of excess cash, not needed to finance operations, in long-term available-for-sale equity securities. At year-end, the market value of these securities was $47,500. 5. Herrera sold 500 shares of treasury stock for $23 per share. 6. Net income for the first year of operations was $16,000. No dividends were declared