On December 1 of the current year, the following accounts and their balances appear in the ledger of Latte Corp., a coffee processor: Preferred 1% Stock, $75 par (400,000 shares authorized, 130,000 shares issued) Paid-In Capital in Excess of Par-Preferred Stock Common Stock, $100 par (800,000 shares authorized, 270,000 shares issued) Paid-In Capital in Excess of Par-Common Stock Retained Earnings $9,750,000 1,950,000 27,000,000 2,160,000 54,000,000 At the annual stockholders' meeting on March 31, the board of directors presented a plan for modernizing and expanding plant operations at a cost of approximately $19,700,000. The plan provided (a) that a building, valued at $2,600,000, and the land on which it is located, valued at $3,800,000, be acquired in accordance with preliminary negotiations by the issuance of 60,000 shares of common stock valued at $93 per share, (b) that 50,000 shares of the unissued preferred stock be issued through an underwriter, and (c) that the corporation borrow $9,300,000. The plan was approved by the stockholders and accomplished by the following transactions: May 11. Issued 60,000 shares of common stock in exchange for land and a building, according to the plan. May 20. Issued 50,000 shares of preferred stock, receiving $80 per share in cash.