On January 7, the articles of incorporation were filed with the Securities and Exchange Commission. The SEC authorized the issuance of 30,000 shares of $50 par value preference share capital and 200,000 shares of $10 par ordinary share capital. On January 28, 40,000 ordinary shares were issued at $15 per share. On February 14, 120,000 ordinary shares were issued in exchange for land and building that have an appraised value of $700,000 and $1,100,000, respectively. On February 24, the company issued to the lawyers 2,000 ordinary shares for legal services in connection with the incorporation. The market value on this date is $16. On September 12, the company received subscriptions for 10,000 preference shares at $53 per share. A 40% down payment accompanied the subscriptions. The balance is due on October 1. On October 1, the final payment on 10,000 shares subscribed last September 12 was received. On November 20, the company issued 8,000 ordinary shares and 2,000 preference shares for a lump sum price of $350,000. At this date, its ordinary was selling for $15 per share and the preference is for $80 per share