Tracey Corporation reports the following in its December 31, 1996, financial report. 1996 1995 Cumulative preferred stock (10%, $100 par value) Common stock ($10 par value, 11,000 shares $ 400,000 $ 400,000 authorized, issued, and outstanding) Additional paid-in capital: 110,000 70,000 Common stock 625,000 500,000 Treasury stock 124,000 55,000 Retained earnings 975,000 250,000 Less: Treasury stock 84,000 105,000 Total stockholders’ equity $2,150,000 $1,170,000 The total balance in Treasury Stock on December 31, 1995, represents the acquisition of 1,500 shares of common stock on March 3, 1994. Chapter 12 Stockholders’ Equity 633 REQUIRED:

a. Compute the number of shares of common stock issued during 1996.

b. Compute the average market price of the common shares issued during 1996.

c. Assume that Tracey Corporation earned net income of $2,000,000 during 1996. Compute the amount of dividends that were declared during 1996.

d. If Tracey Corporation did not declare or pay any dividends during 1995, and again assum¬ ing a net income during 1996 of $2,000,000, compute the amount declared as dividends to common stockholders during 1996.

e. Prepare the entry that would have been necessary on March 3, 1994, to record the purchase of the treasury stock.

f. Assume that all shares of treasury stock reissued during 1996 were reissued at the same time and at the same price. Prepare the entry to record the reissuance of the treasury stock. g. At what per-share price was the treasury stock reissued?