Refer to questions within each photo.

Bacon, Inc., has the following stockholders' equity section in its May 31, 2016, comparative balance sheets: May 31, 2016 April 30, 2016 Paid-in capital: Preferred stock, $120 par value, 9%, cumulative, 50,000 shares authorized, 35,000 shares Common stock, $5 par value, 250,000 shares authorized, 150,000 and 135,000 shares Additional paid-in capital issued and outstanding $4,200,000 $4,200,000 675,000 5,805,000 8,660,000 (1037000) ?$18,303,000 issued, respectively Retained earnings Less: Treasury common stock, at cost; 18,000 shares and 17,000 shares, respectively 6,495,000 9,050,0000 (1.101,000) Total stockholders' equity