Identifying and Analyzing Financial Statement Effects of Stock-Based Compensation The stockholders' equity of Aspen Corporation at December 31, 2019, follows. 7% Preferred stock, $100 par value, 20,000 shares authorized; 2,400 shares issued and outstanding $240,000 Common stock, $15 par value, 300,000 shares authorized; 18,000shares issued and outstanding 270,000 Paid-in capital in excess of par value-preferred stock 21,600 Paid-in capital in excess of par value-common stock Retained earnings 216,000 195,000 $942,600 Total stockholders' equity The following transactions, among others, occurred during the following year. Employees exercised 7,200 stock options that were granted in 2015 and had a three-year vesting period. These options had an estimated fair value of $2 at the grant date, and an exercise price of $16. There were no other vested or unvested options after this exercise. Awarded 600 shares of stock to new executives, when the stock price was $36. Sold 6,000 shares to employees under the company-wide stock purchase plan. Under the plan, employees purchased the shares at a 10% discount when the stock price was $33 per share. Granted 24,000 new stock options, with a strike price of $34 and an estimated fair value of $6. The options vest over three years. Required Prepare the December 31, 2019, statement of stockholders' equity assuming that the company reports 2019 pretax income of $289,800 before the effects of stock-based compensation. Assume the company has a 35% tax rate. ASPEN CORPORATION Statement of Stockholders' Equity Retained Preferred Stock Common Stock Earnings Paid-in Shares Capital in Shares Paid-in Capital in Issued par $100 Excess Issued Par $15 Excess Start of year $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Stock options exercised 0 0 0 0 0 0 0 Stock award 0 0 0 0 0 0 0 Employee stock purchase 0 0 0 0 0 0 0 Stock options granted 0 0 0 0 0 0 0 Net income 0 0 0 0 0 0 0 End of year $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0