The following data were taken from the financial statements of Loveseth Inc. for the current fiscal year. Property, plant, and equipment (net) $1,437,800 Liabilities: Current liabilities $220,000 Note payable, 6%, due in 15 years 1,106,000 Total liabilities $1,326,000 Stockholders' equity: Preferred $2 stock, $100 par (no change during year) $1,989,000 Common stock, $10 par (no change during year) 1,989,000 Retained earnings: Balance, beginning of year $2,122,000 Net income 701,000 $2,823,000 Preferred dividends $39,780