Novak Corporation is preparing the comparative financial statements to be included in the annual report to stockholders. Novak employs a fiscal year ending May $31.$Income from operations before income taxes for Novak was $$1,507,000$ and $$665,000,$ respectively, for fiscal years ended May $31,2026$ and $2025.$ Novak experienced a loss from discontinued operations of $$363,000$ on March $3,2026.$ A $20\%$ combined income tax rate pertains to any and all of Novak Corporation's profits, gains, and losses.Novak's capital structure consists of preferred stock and common stock. The company has not issued any convertible securities or warrants and there are no outstanding stock options.Novak issued $39,000$ shares of $$100$ par value, $6\%$ cumulative preferred stock in $2022.$ All of this stock is outstanding, and no preferred dividends are in arrears.There were $900,000$ shares of $$1$ par common stock outstanding on June $1,2024.$ On September $1,2024,$ Novak sold an additional $392,400$ shares of the common stock at $$18$ per share. Novak distributed a $20\%$ stock dividend on the common shares outstanding on December $1,2025.$ These were the only common stock transactions during the past $2$ fiscal years.