Lerner Company had the following transactions in 2015, its first year of operations.

Issued 20,000 shares of common stock. Stock has par value of $1.00 per share and was issued at $14.00 per share.

Issued 1,000 shares of $100 par value preferred stock. Shares were issued at par.

Earned net income of $45,000.

Paid cash dividends of $20,000