Problem 2 The stockholders' equity of the TAEOH Corp. as of December 31, 2020, was as follows: Common stock, #10 par, authorized: 300,000 shares 250,000 shares issued and outstanding? 2,500,000 Paidin capital in excess of par 3,250,000 Retained earnings 1,800,000 On June 1, 2021, TAEOH reacquired 40,000 shares of its common stock at 40. The following transactions occurred in 2022 with regard to these shares. July 1 Sold 15,000 shares at 945 Aug 1 Sold 17,000 shares at 930 Sept 1 Retired 1,000 shares. The following entries were made by the bookkeeper to record the preceding transactions: 2022 June 1 Treasury stock 9 1,600,000 Cash 9 1,500,000 July 1 Cash 675,000 Treasury stock 675,000 Aug 1 Cash 510,000 Treasury stock 510,000 Sept 1 Common stock 10,000 Treasury stock 10,000 The company's net income for 2021 was $120,000