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Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends throughout Year 6,

Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends throughout Year 6, the current year. It is also declaring a stock dividend to its stockholders as the calendar year-end approaches. Youve been brought in as a consultant to assist with this process, and also to help determine whether some missing information can be determined before the distribution of the stock dividend is made. The company has two classes of stock: common stock and cumulative preferred stock.

Youve been able to retrieve the following information so far:

Number of common shares authorized

800,000

Number of common shares issued

650,000

Par value of common shares

$20

Par value of cumulative preferred shares

$30

Paid-in capital in excess of par-common stock

$7,000,000

Paid-in capital in excess of par-preferred stock

$0

Total retained earnings before the stock dividend is declared

$33,500,000

No treasury shares have been reissued.

Total Cash Preferred Dividends Common Dividends
Year Dividends Total Per Share Total Per Share

Year 1

40,000

40,000

0.20

0

0.00

Year 2

72,000

72,000

0.36

0

0.00

Year 3

113,000

68,000

0.34

45,000

0.09

Year 4

135,000

60,000

0.30

75,000

0.15

Year 5

150,000

60,000

0.30

90,000

0.18

Year 6

210,000

60,000

0.30

150,000

0.30

The company declared a 3% common stock dividend on December 1, and would like you to compute the following pieces of missing information. The market value of the common shares is $25.00 on December 1, and is $32.00 on the actual distribution date of the stock, December 31.

Total paid-in capital before the stock dividend = ?

Total retained earnings before the stock dividend = 33,500,000

Total stockholders equity before the stock dividend = ?

Total paid-in capital after the stock dividend = ?

Total retained earnings after the stock dividend = ?

Total stockholders equity after the stock dividend = ?

Please help, I'm lost. How do I calculate each of these items?

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