Share capital PHAROAH INC. Shareholders' Equity December 31, 2022 Preferred shares, no par value, $8, cumulative, and participating (20,000 authorized; 1,080 issued and outstanding) $108,000 Common shares, unlimited number authorized, 40,000 issued and outstanding 540,000 Contributed capital, preferred share retirement 20,620 668,620 Retained earnings Shareholders' equity 307,490 $976,110 The preferred share dividend was not paid in 2022. Several transactions affecting shareholders' equity took place during the fiscal year ended December 31, 2023, and are summarized in chronological order as follows: 1. 2. 3. Exchanged 10,000 common shares for prototype piano tuning equipment. The equipment was valued at $100,000 by an independent appraiser. On the transaction date, PI's shares were actively trading at $10 per share. Purchased and retired 10,000 common shares at $13.50 per share. Paid the annual dividend on the preferred shares. The common shares were then paid a $2 per share dividend. PI's net income for 2023 was $70,000.