Original Octave Inc. (OOI) is a widely held, publicly traded company that designs equipment for tuning musical instruments. Information about its shareholders' equity is as follows. ORIGINAL OCTAVE INC. Shareholders' Equity December 31, 2019 Share capital Preferred shares, no par value, $8, cumulative, and participating (20,000 authorized; 1,010 issued and outstanding) $101,000 Common shares, unlimited number authorized, 41,000 issued and outstanding 512,500 Contributed capital, preferred share retirement 19,310 632,810 Retained earnings Shareholders' equity 278,530 $911,340 The preferred share dividend was not paid in 2019. Several transactions affecting shareholders' equity took place during the fiscal year ended December 31, 2020 and are summarized in chronological order as follows. 1. Exchanged 10,250 common shares for a prototype piano tuning equipment. The equipment was valued at $102,500 by an independent appraiser. On the transaction date, OOI's shares were actively trading at $10 per share. 2. Purchased and retired 10,250 common shares at $12.50 per share. 3. Paid the annual dividend on the preferred shares. The common shares were then paid a $2 per share dividend. Original Octave's net income for 2020 was $66,020.