The following information is available for Beauvalon Inc. for the preparation of its September 30, 2020, financial statements:

Income before taxes .................................................................................... $   265,400

Income tax expense ....................................................................................  $     62,600

Other comprehensive income (loss) ........................................................   $    (12,300)

Earnings per share ....................................................................................    $       1.878

Dividends declared, common ..................................................................    $     40,000

Dividends declared, preferred .................................................................    $     15,000

Retained earnings, October 1, 2019 ........................................................    $1,457,850

Accumulated other comprehensive income, October 1, 2019 ..............  $      43,700

Share capital, common shares, October 1, 2019 ....................................   $2,000,000

Share capital, preferred shares, October 1, 2019 ..................................    $   500,000

Beauvalon did not issue or buy back any shares during the year.

Required

a. Prepare the shareholders’ equity section of the statement of financial position as at September 30, 2020. 

b. How many common shares does Beauvalon have outstanding?