The stockholders' equity section of Splish Brothers Corporation at December 31 is as follows. Stockholders' equity SPLISH BROTHERS CORPORATION Balance Sheet (partial) Paid-in capital Preferred stock, 10,000 shares authorized, 5,500 shares issued and outstanding $385,000 Common stock, no par, 750,000 shares authorized, 310,000 shares issued 1,550,000 Total paid-in capital Retained earnings 1,935,000 2,030,000 Total paid-in capital and retained earnings 3,965,000 Less: Treasury stock (5,900 common shares) (70,000) Total stockholders' equity $3,895,000 From a review of the stockholders' equity section, answer the following questions.