On September 1, Mr. Smith sold short 120 shares of A Inc. stock at $120 per share and also sold short 240 shares of B Corp. stock for $240 per share. The initial and maintenance margin requirement were 55% and 30%, respectively. On September 23, A Inc. stock sold for $100 per share and B Corp. stock sold for $245 per share.

(a) (4 points) What is the initial equity in dollars in Mr. Smith's account?

(b) (6 points) Determine whether Mr. Smith's account is over-margined, restricted, or under-margined as of September 23. Show all the equations/steps to reach your conclusion.