1. Shown below is information relating to the stockholders' equity of Reeve Corporation as of December 31, Year 1:

   10.5% cumulative preferred stock, $100 par value; authorized, ?? shares; issued and outstanding, ?? shares	$ 2,500,000
   Common stock, $10 par value; authorized, 660,000 shares; issued and outstanding, 200,000 shares	2,000,000
   Additional paid-in capital: Common stock	600,000
   Retained earnings (Deficit)	(100,000)
   Dividends in arrears	262,500

   Total stockholders' equity is:

   		$5,100,000.
   		$5,200,000.
   		$5,000,000.
   		$4,737,500.