Shareholders Equity Preferred stock, $100 par value; authorized, 330,000 shares; issued, 33,000 shares $3,300,000 Common stock, $5 par value; authorized, 2,200,000 shares; issued, 440,000 shares 2,200,000 Paid-in capital in excess of parpreferred 99,000 Paid-in capital in excess of parcommon 935,000 Retained earnings 2,200,000 $8,734,000 The following events occurred during 2013: Jan. 5 50,000 shares of authorized and unissued common stock were sold for $8 per share. Jan. 16 50,000 shares of authorized and unissued preferred stock were sold for $107 per share. April 1 90,000 shares of common stock were repurchased for the treasury at a price of $19 per share. Superior uses the cost method to account for treasury stock. Sept. 1 5,000 shares of preferred stock are issued in exchange for a piece of land. The land has an appraised value of $542,000. The preferred stock currently trades on the New York Stock exchange at a price of $107 per share. Dec. 1 15,000 shares of treasury stock are reissued at a price of $24 per share

3. Calculate Superior's legal capital at December 31, 2013. Total legal capital : $

I need help with #3. Please explain how you got the answer.