Stoskholders'equity: Capital stock, 2& par value, 200,000 shares authorized

100,000 issued and outstanding 200.000

Additional paid-in capital: capital stock 2.000.000

Total paid-in capital 2.200.000

Retained earnings 1.500.000

Total shareholders' equity 3.700.000

Transactions related to the shareholders equity during the year are as follows:

Jan. 2nd : Declared a dividend of 2$ per share to stockholders of record on January 31, payable on February 13.

Feb. 13 : Paid the cash dividend declared on January 2.

March 15: The Company purchased 1,000 shares of its own capital stock at a price of $11 per share

April 25: Reissued 700 shares of Treasury stock at a price of 14 per share.

May 22nd : Declared a 5% stock dividend to stockholders on record at June 22 to be distributed on July 1st.

July 1st: Paid the dividends declared on May 22nd.

August 1st: reissued 100 of the 300 remaining shares of treasury stock at a price of $15 per share

September 1st: Issues 10,000 of 7% cumulative preferred stock with $1.000 face value.

December 31st: The income summary account, showing net income for the year of $1,340,000 was closed into the retained earnings account.

December 31st : The preferred stock dividends was closed into the retained earnings account

December 31st: The balance in the dividend account was closed into the retained earnings account

b) Prepare the stockholders equity section of the balance sheet as of December 31, 2019(20 points) ?

c) Compute the maximum cash dividend per share that legally could be declared at December 31, 2019. (20 points) ?