On January 1, 2019, Lundy Corporation provided the following information:

• 2,000,000 shares of $6 par value common stock were authorized to be issued.

• 500,000 shares of 6%, $50 par cumulative preferred stock were authorized to be issued.

• The balance in the common stock account was $5,700,000.

• The balance of the retained earnings account was $900,000.

• The balance in the preferred stock account was $13,750,000.

• The balance in the treasury stock account was $116,000 at a cost of $8 per share.

• Net income for the year was $15,050,000.

• No dividends were in arrears.

During 2019, the Company accounted for the following events:

1. On February 20, the companys accountant observed that depreciation on equipment for the year 2018, recorded as $235,400, was overstated by 10% of the correct amount, due to an error in the calculation of the equipments useful life.

2. On May 26, the company declared total dividends on preferred stock and $0.75 dividend per share on common stock.

3. A 2 for 1 stock split was announced on June 30.

4. A 5% stock dividend was declared on December 12, at time of which the price per share of common stock was $10