The stockholders' equity section of Lachlin Corporation's balance sheet at December 31 is presented here. LACHLIN CORPORATION Balance Sheet (partial) Stockholders' equity Paid-in capital Preferred stock, cumulative, 10,000 shares authorized, 6,000 shares issued and outstanding $600,000 Common stock, no par, 750.000 shares authorized, 580,000 shares issued 2,900,000 Total paid-in capital 3,500,000 Retained earnings 1,158,000 Total paid-in capital and retained earnings 4,658,000 Less: Treasury stock (6,000 common shares) Total stockholders' equity From a review of the stockholders' equity section, answer the following questions. (a) How many shares of common stock are outstanding? 32,000 $4,626,000 (b) Assuming there is a stated value, what is the stated value of the common stock? The stated value of the common stock $ (c) What is the par value of the preferred stock? The par value of the preferred stock 5 per share 100 per share (d) If the annual dividend on preferred stock is $36,000, what is the dividend rate on preferred stock? The dividend rate 6 % (e) If dividends of $72,000 were in arrears on preferred stock, what would be the balance reported for retained earnings? The Retained Earnings balance $ 1086000