Part 1 of 2 Lynbrook, Inc. has been in business for 10 years and has been generating strong profits over the last 8 years. Lynbrook is authorized to issue 40,000 shares of $10 common stock and 10,000 shares of 8%, $100 par preferred stock. The Contributed Capital section of its January 1, 2021, balance sheet is as follows: 8% Preferred Stock, $100 par value Common stock, 10 par value APIC - Preferred stock APIC - Common stock Total Paid-in-Capital $190,000 80,000 15,200 104,000 $389,200 Part a. Answer the following questions to Stockholders' Equity: At what average price per share has the preferred stock been issued? At what average price per share has the common stock been issued? How many shares of common stock have been issued? How many shares of preferred stock have been issued? Part b. The company engaged in the following transactions in 2021: Feb. 10 Issued 350 shares of the 8%preferred stock at a price of $122 per share. Mar. 31 Sold 900 shares of commons stock for $34 per share. Apr. 10 Issued 400 shares of common stock in exchange for land. The stock is currently selling at $33 per share. May 22 Reacquired 500 shares of commons stock $36 per share. The company uses the cost method to account for treasury stock. Nov. 2 Reissued 400 shares of the treasure stock at $42 per share. Dec. 31 Distributed an $8-per-share dividend on all preferred stock outstanding and a $2-per- share dividend on all common stock outstanding on this date. Required: 1. Answer the questions in Part a. 2. Prepare journal entries to record the transactions in Part b. Prepare the Contributed Capital section of Lynbrook's December 31, 2021, balance sheet. (continued) Part 2 of 2 As the controller of Lynbrook, Inc. you have been asked by the CFO to evaluate the following stock dividend options. The CFO is considering recommending to the Board of Directors a stock dividend instead of a cash dividend. The common stock is currently selling at $34 per share. The following is Lynbrook's current shareholders' equity: Common stock, $10 par APIC - common stock Total contributed capital Retained earnings Total shareholders' equity $400,000 800,000 $1,200,000 1,300,000 $2,500,000 Required: Assuming a 10% stock dividend is declared and issued, prepare the shareholders' equity section immediately after the date of issuance. Assuming, instead, that a 40% stock dividend is declared and issued, prepare the shareholders' equity section immediately after the date of issuance