Quick Fix-it Corporation was organized in January 2018 to operate several car repair businesses in a large metropolitan area. The charter issued by the government authorized the following no par value shares: Common shares, 200,000 shares. Preferred shares, 50,000 shares. During January and February 2018, the following transactions were completed: a. Collected $80,000 cash from shareholders and issued 4,000 common shares. b. Sold and issued 2,000 preferred shares at $25 per share; collected the cash. c. Sold and issued 500 common shares to a new investor at $25 per share; collected the cash. The company's operations resulted in net earnings of $40,000 for 2018. The board of directors declared cash dividends of $25,000 that were paid in December 2018. The preferred shares have a dividend rate of $1 per share. Required: 1. Prepare the shareholders' equity section of the statement of financial position at December 31, 2018. QUICK FIX-IT CORPORATION Shareholders' Equity December 31, 2018 Share capital: Total share capital 0 Total shareholders' equity $ 0 2. Not available in Connect. 3. Is it ethical to sell shares to outsiders at a higher price than the amount paid by the organizers? Ethical Unethical