PROBLEM I: Below is the stockholders' equity section of the Withers Corporation balance sheet at the start of business on January 1, 2019: Common Stock: 2,000,000 shares authorized: 40,000 shares of $6 par value sock issued and outstanding: $240,000 Common Stock-Additional Paid-in Capital: $2.160,000 $2,400,000 $3,600,000 Retained Earnings: Total Stockholders' Equity $6,000,000 The relevant transactions affecting Withers' Stockholders' Equity accounts in 2019 were as follows: Jan. 1: Issued 20,000 shares of $100 Par Value, 3% Preferred Stock Jan. 2: Declared a 2:1 stock split Feb.1: Purchased equipment valued at $240,000 by issuing 8,000 shares of common stock. Apr.1: Declared and issued a 10% stock dividend when the common share price was $35. June 1: Reacquired 3,000 shares @ $40 per share. Dec. 15: Declared a $2 per dividend on the common that will be paid on December 30. Dec. 30: Paid the December 15" dividend. Dec. 31: The 2019 net income for Withers was $940,000