The company authorized to sell 10,000 shares of 8% preferred stock that has a $150 par value.So far, they have sold 6,000 shares.Each share was sold for $172.The stock is cumulative.There are no dividends in arrears.

The company is authorized to sell 500,000 shares of common stock that has a par value of $6.50400,000 shares have been issued and 350,000 are outstanding.Each share of common stock was sold for $15. The 50,000 shares held in treasury were reacquired at a cost of $12 per share.

Retained earnings at the beginning of the period was 1,237,500.Net income for the year was $600,000 and dividends paid out were $286,000.