On December 31, year 1, Saxe Corporation was acquired by Poe Corporation. In the business combination, Poe issued 200,000 shares of its $10 par common stock, with a market price of $18 a share, for all of Saxe's common stock. The stockholders' equity section of each company's balance sheet immediately before the combination was

ParticularsPoeSaxe

Common stock$3,000,000$1,500,000

Additional paidin capital1,300,000150,000

Retained earnings2,500,000850,000

Total$6,800,000$2,500,000

In the December 31, year 1 consolidated balance sheet, common stock should be reported at

$5,000,000

$4,000,000

$3,500,000

$3,000,000