Sage Hill Limited is a private company that follows ASPE. It is authorized to issue an unlimited number of both common and $5 cumulative preferred shares. On December 31, 2021, there were 39,500 common and 1,400 preferred shares issued. The common shares had been issued at an average per share amount of $10; the preferred shares at $105. The balance in the Retained Earnings account on January 1, 2021, was $292,500. During 2021, the company had profit of $130,000 and declared a total of $77,000 of dividends, of which $61,000 was paid during the year.