Pharoah Inc began operations in January 2018 and reported the following results for each of its 3 years of operations. 2018 $265,000 net loss 2019 $40,000 net loss 2020 $765,000 net income At December 31, 2020, Pharoah Inc. capital accounts were as follows. 8% cumulative preferred stock, par value $100, authorized, issued, and outstanding 5,000 shares Common stock, par value $1.00; authorized 1,000,000 shares; issued and outstanding 682,000 shares $500,000 $682,000 Pharoah Inc. has never paid a cash or stock dividend. There has been no change in the capital accounts since Pharoah began operations. The state law permits dividends only from retained earnings. Pharoah Inc began operations in January 2018 and reported the following results for each of its 3 years of operations. 2018 $265,000 net loss 2019 $40,000 net loss 2020 $765,000 net income At December 31, 2020, Pharoah Inc. capital accounts were as follows. 8% cumulative preferred stock, par value $100, authorized, issued, and outstanding 5,000 shares Common stock, par value $1.00; authorized 1,000,000 shares; issued and outstanding 682,000 shares $500,000 $682,000 Pharoah Inc. has never paid a cash or stock dividend. There has been no change in the capital accounts since Pharoah began operations. The state law permits dividends only from retained earnings