The ledger of Fortaleza SA at December 31, 2017, after the books have been closed, contains the following equity accounts. Share Capital-Preference (8,000 shares issued) Share Capital-Ordinary (400,000 shares issued) Share Premium-Preference Share Premium-Ordinary Ordinary Share Dividends Distributable Retained Earnings R$ 800,000 2,000,000 100,000 1,220,000 200,000 2,520,000 A review of the accounting records reveals the following. 1. No errors have been made in recording 2017 transactions or in preparing the closing entry for net income. 2. Preference shares are 8%, R$100 par value, non-cumulative, and callable at R$125. Since January 1, 2016, 8,000 shares have been outstanding; 20,000 shares are authorized.