The stockholders’ equity section of Buzytown Industries balance sheet reports the following: 1997 1996 Preferred stock (9%, $100 par value) $ 200,000 $ 110,000 Common stock ($10 par value, 750,000 shares authorized, 90,000 issued and 5,000 held in treasury) 900,000 750,000 Additional paid-in capital: Preferred stock 150,000 35,000 Common stock 465,000 298,000 Retained earnings 575,000 495,000 Less: Treasury stock 110,000 — Total stockholders’ equity $2,180,000 $1,688,000 REQUIRED:

a. How many shares of preferred stock were issued during 1997? What was the average issue price?

b. How many shares of common stock were issued during 1997? What was the average issue price?

c. Prepare the entry to record the repurchase of the company’s own stock during 1997. What was the average repurchase price?

d. Assume that the treasury shares were purchased on the last day of 1997. Did the purchase increase or decrease the book value of the outstanding shares? By how much?