REQUIREMENTS $($please answer both questions$)$

$1.$Prepare the$$ stockholders' equity section of Lelacheur$\text{'}$s balance sheet$($in thousands$).$

$2.$How can Lelacheur have a larger balance of treasury stock than the sum of Common Stock and$$ Paid$-$in Capital in Excess of$$ Par?

Inventory. $....................................$

$$710$

Common stock, $$1\mathrm{.}00$ par per share,

Property, plant and equipment, net. $...............$

$857$

$800$ shares authorized,

Paid$-$in capital in excess of par. $..................$

$907$

$260$ shares issued. $...........$

$$260$

Treasury stock,

Retained earnings. $.................$

$2,290$

$180$ shares at cost$.......................$

$2,700$

Accounts receivable, net. $............$

$1,000$

Accumulated other comprehensive income $($loss$)....$

$(732)*$

Notes payable. $....................$

$1,144$

$*$ Debit balance