On DEC 31, 2011 DELL’S INC. had 660000shares outstanding, In addition, DELL had the following debt and equity securities on its books on December 31, 2011, If the net income is $2200000 a. 25,000 shares of $100 par, 0.15 cumulative preferred stock b. 40,000 shares of $100 par, 0.16 cumulative preferred stock, par $100, Each share of preferred stock is convertible into 13 shares of common stock. What is the basic EPS Answer for part 1 What is the diluted EPS
Q: For a recent 2-year period, the balance sheet of Santana Dotson Company showed the following…
A: Step 1 The par value of the common stock for 2019 is $2.50 which is obtained by dividing the value…
Q: You have been provided with the following information for Company 123 for the year 2020: Net income…
A: Basic EPS ( Earning Per Share )=(Net Income-Preferred Dividend)Weighted average shares outstanding…
Q: Happi Man Inc. had 220,000 ordinary shares outstanding in all of 2022. On January 1, 2020, Happi…
A: Basic EPS= Income available to common stockholders/Weighted average number of shares. Income…
Q: Cyclone Corporation was authorized to issued 1, 000 shares of P100 par, 8% cumulative preference…
A: Ordinary shares, often referred to as common shares, seem to be company shares that provide…
Q: On January 1,2022, the stockholders equity section of concord corporation shows common stock ($5…
A: Treasury stock refers to a method used by the organization to repurchase the issued stock. It is…
Q: JackieStamping began the current year with 470,000common shares outstanding and issued an additional…
A: Beginning shares outstanding: 4,70,000 Additional shares issued on 1 September =1,20,000 11,30,000…
Q: E11-3 During its first year of operations, Foyle Corporation had the following transactions…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: Alpha company reported the following equity accounts on January 1, 2020. Tpoint hare capital, P20…
A: Share Premium: When shares are issued more than PAR value called Issued at premium. Share premium =…
Q: At January 1, 2016, Canaday Corporation had outstanding the following securities: 600 million common…
A: Earnings per share (EPS) are company’s profit which is divided by outstanding common stock per…
Q: Data pertaining to Classic Corp.’s common stock are presented for the fiscalbyear ending May 31,…
A: Solution: Price earning ratio of a company represents how much time of earning per share have a…
Q: Skysong Company had the following stockholders’ equity as of January 1, 2020. Common stock, $5 par…
A:
Q: The information below pertains to Swifty Company for 2021. Net income for the year $1,210,000 7%…
A: Basic earnings per share refer to a firm's net income was allotted to each share of common stock. In…
Q: Bonita Industries, has 4230000 shares of common stock outstanding on December 31, 2020. An…
A: Since Bonita issued 19000, $1,000 face value, 8% convertible bonds each will be converted into 20…
Q: The information below pertains to Crane Company for 2021. Net income for the year $1.210,000 7%…
A: EPS or Earnings-per-Share refers to portion of net profit that belongs to each single unit of common…
Q: On January 1, 2013, Warhol Company issued 2 comma 000 shares of 10, $ 110 par value, cumulative…
A: The dividends are declared from the retained earnings.
Q: n April 2, 2011, Caesar Corporation’s BOD declared a 15% stock dividend for stockholders on record…
A: The question is based on the concept of Financial Accounting. When a dividend is declared the amount…
Q: On March 15, 2018, Bank of America issued 94,000 shares of 5.875% Fixed-to-Floating Rate…
A: Dividend is the term which is described as the distribution of the earnings of the firm to its…
Q: On January 1, 2023, the stockholders’ equity section of Kay Corporation shows common stock ($7 par…
A: Introduction: Ownership of a company is represented by shares. When someone purchases stock in your…
Q: (Note: This is a variation of E 19–16, modified to include the exercise of stock options.)On…
A: Calculate the net income as follows: Net income available to equity share holders = Net income -…
Q: Velvet Inc. had the following stockholders’ equity account balances at December 31,2006: Preferred…
A: Step 1 Journal is the part of book keeping.
Q: Brown Company had 200,000 shares of P20 par ordinary and 20,000 shares of P100 par, 6% cumulative,…
A: Formula: Diluted earnings per share = Net income / Total outstanding Ordinary shares
Q: At January 1, 2021, Canaday Corporation had outstanding the following securities: 720 million common…
A: In order to determine the Earning per share, the total earning available to the equity shareholder's…
Q: E11-6. Hodge Corporation issued 100,000 shares of $20 par value, cumulative, 6% preferred stock on…
A: a) Given 100,000 shares were issued for $2,300,000 Therefore value per share = 2,300,000/100,000 =…
Q: The following information was obtained from the statement of financial position of NORWAY, INC. on…
A: The answers for the multiple choice questions and relevant computation are shown hereunder : The…
Q: Derek Corporation was organized on January 1, 2009. During its first year, the corporation issued…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: E11-1 During its first year of operations, Mona Corporation had these transactions per- taining to…
A: a. Record journal entries assuming common stock has par value of $5 period share as shown below:
Q: Laurent Co, Incorporated, has 4,200,000 shares of common stock outstanding on December 31, 2017. An…
A: Laurent Co, Incorporated, has 4,200,000 shares of common stock outstanding on December 31, 2017. An…
Q: E11-6 Hodge Corporation issued 100,000 shares of $20 par value, cumulative, 6% pre- ferred stock on…
A: Preference shareholders are those shareholders who have preference in payment of capital and…
Q: Pacers Corp. Has the following portfolio of investment securities at September 30, 2018: Trading…
A: SOLUTION- WORKING NOTES- 1- COMPUTATION OF UNREALIZED HOLDING LOSS ON SEPTEMBER 30 2018-…
Q: On January 1, 2011 APPLE.had 170000 shares, On April 1, 2011 APPLE sold 55000 shares, on July 1,2011…
A: Basic earnings per share is calculated by dividing the profit available for ordinary shares from the…
Q: How much is the stockholder's equity? How much is the retained earnings?
A: 1. Issuance of 10% stock dividend will affect the share capital (a) Retained earnings A/c Dr.…
Q: information below pertains to Sage Company for 2021. Net income for the year $1,210,000 7%…
A: Diluted earnings per share: It is the calculation of earning per share after adjusting exercise…
Q: On January 1, 2020, the stockholders’ equity section of Skysong, Inc. shows common stock ($6 par…
A: We know that treasury stock is the stock which is purchase by the company from open market, it also…
Q: McElroy Company has the following portfolio of investment securities at September 30, 2012, its last…
A: The securities that were bought for a short period of time and to earn a profit that could…
Q: The market value of G's common stock was P20 per share at December 31, 2010, and P27 per share at…
A: Answer with explanation are as follows:
Q: Sunland Company, has 4170000 shares of common stock outstanding on December 31, 2020. An additional…
A:
Q: Field Company's stockholders' equity account balances at December 31, 2006, were as follows: Common…
A: Total stockholders equity in the business means total amount attributable to the shareholders of the…
Q: The information below pertains to Pierpont Corp. for 202 Net income, $1,200,000. Common Stock, $10…
A: The formula for calculating basic EPS involves dividing net income by the number of common shares…
Q: The information below pertains to Swifty Company for 2021. Net income for the year $1,210,000 7%…
A: Answer: Net Income = $12,10,000 Preferred Dividend = 4,200,000*6% = $252000 Number of shares =…
Q: On January 1,2022, the stockholders equity section of concord corporation shows common stock ($5…
A: Sale value of treasury stock=Number of shares×Value per share=11,000×$11=$121,000
Q: Information concerning the capital structure of Regan Corporation is as follows:…
A: Introduction:- Basic earnings per share is the amount of a company's profits allocate to each share…
Q: Items 21 and 22 are based on the Following Information: Fortunato Company had 200,000 ordinary…
A: Given information, On January 1st,2015, Number of ordinary shares outstanding = 200,000. Net income…
Q: The information below pertains to Shamrock Company for 2021. Net income for the year $1,210,000…
A: Earning per share: It is the amount of earning on outstanding per share of common stock.
Q: Gordon Corporation reported the following equity section on its current balance sheet. The common…
A: If dividend is issued in form of stock instead of cash then such dividend is called as Stock…
Q: Information concerning the capital structure of Regan Corporation is as follows:…
A: Diluted EPS includes the effect of potential convertible shares in the weighted number of shares.
On DEC 31, 2011 DELL’S INC. had 660000shares outstanding, In addition, DELL had the following debt and equity securities on its books on December 31, 2011, If the net income is $2200000
a. 25,000 shares of $100 par, 0.15 cumulative
b. 40,000 shares of $100 par, 0.16 cumulative preferred stock, par $100, Each share of preferred stock is convertible into 13 shares of common stock.
What is the basic EPS
Answer for part 1What is the diluted EPS
Step by step
Solved in 2 steps
- Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.Outstanding Stock Lars Corporation shows the following information in the stockholders equity section of its balance sheet: The par value of common stock is S5, and the total balance in the Common Stock account is $225,000. There are 13,000 shares of treasury stock. Required: What is the number of shares outstanding? Use the following information for Exercises 10-58 and 10-59: Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, S20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.Percy Company has 15,000 shares of common stock outstanding during all of 2019. It also has 2 convertible securities outstanding at the end of 2019. These are: 1. Convertible preferred stock: 1,000 shares of 9%, 100 par, preferred stock were issued in 2015 for 140 per share. Each share of preferred stock is convertible into 3.5 shares of common stock. The current dividends have been paid. To date, no preferred stock has been converted. 2. Convertible bonds: Bonds with a face value of 100,000 and an interest rate of 10% were issued at par on July 1, 2019. Each 1,000 bond is convertible into 35 shares of common stock. To date, no bonds have been converted. Percy earned net income of 54,000 during 2019. Its income tax rate is 30%. Required: Compute the 2019 diluted earnings per share. What earnings per share amount(s) would Percy report on its 2019 income statement?
- Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. In the space provided below, prepare the stockholders equity section of Chen Corporations balance sheet as of December 31, 2012. Use proper headings and provide full disclosure of all appropriate information. Chens corporate charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock.Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 0 par common stock at 0, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a held- to-maturitv long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 545, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method, q. Accrued interest for three months on the Dream Inc. bonds purchased in (1). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions Journalize the selected transactions. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016. Income statement data: Advertising expense 150,000 Cost of merchandise sold 3,700,000 Delivery expense 30,000 Depreciation expense -office buildings and equipment 30,000 Depreciation expensestore buildings and equipment 100,000 Dividend revenue 4,500 Gain on sale of investment 4,980 Income from Pinkberry Co. investment 76,800 Income tax expense 140,500 Interest expense 21,000 Interest revenue 2,720 Miscellaneous administrative expense 7.500 Miscellaneous selling expense 14,000 Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 Sales 5,254,000 Sales commissions 185,000 Sales salaries expense 385,000 Store supplies expense 21,000 Retained earnings and balance sheet data: Accounts payable 194,300 Accounts receivable 545,000 Accumulated depreciationoffice buildings and equipment 1,580,000 Accumulated depreciationstore buildings and equipment 4,126,000 Allowance for doubtful accounts 8,450 Available for sale investments (at cost) 260,130 Bonds payable. 5%. due 2024 500,000 Cash 246,000 Common stock, 20 par (400,000 shares authorized; 100,000 shares issued. 94,600 outstanding) 2,000,000 Dividends: Cash dividends for common stock 155,120 Cash dividends for preferred stock 100,000 Goodwill 500,000 Income tax payable 44,000 Interest receivable 1,125 Investment in Pinkberry Co. stock (equity method) 1,009,300 Investment in Dream Inc. bonds (long term) 90,000 Merchandise inventory [December 31, 2016). at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4.320,000 Paid-in capital from sale of treasury stock 13,000 Excess of issue price over parcommon stock 886,800 Excess of issue price over parpreferred stock 150,000 Preferred 5% stock. 80 par (30,000 shares authorized; 20,000 shares issued] 1,600,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, January 1, 2016 9,319,725 Store buildings and equipment 12,560,000 Treasury stock (5,400 shares of common stock at cost of 33 per share) 178,200 Unrealized gain (loss) on available for sale investments (6,500) Valuation allowance for available for sale investments (6,500)
- Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a heldtomaturity long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method. q. Accrued interest for three months on the Dream Inc. bonds purchased in (l). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016.Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--, the beginning of its fiscal year, are shown below. (a)Received 20,000 for the balance due on subscriptions for preferred stock with a par value of 40,000 and issued the stock. (b)Purchased 10,000 shares of common treasury stock for 18 per share. (c)Received subscriptions for 10,000 shares of common stock at 19 per share, collecting down payments of 45,000. (d)Issued 15,000 shares of common stock in exchange for land with a fair market value of 290,000. (e)Sold 5,000 shares of common treasury stock for Si00,000. (f)Issued 10,000 shares of preferred stock at 11.50 per share, receiving cash. (g)Sold 3,000 shares of common treasury stock for 17 per share. REQUIRED 1. Prepare general journal entries for the transactions, identifying each transaction by letter. 2. Post the journal entries to appropriate T accounts. The cash account has a beginning balance of 300,000. 3. Prepare the stockholders equity section of the balance sheet as of December 31, 20--. Net income for the year was 825,000 and dividends of 400,000 were paid.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements.
- The following selected transactions and events occurred during 2013: a. Issued 200 shares of preferred stock for 20,000. b. Sold 800 shares of treasury stock for 2,800. c. Declared and issued a 4% common stock dividend. The market value on the date of declaration was 5 per share. d. Generated a net loss for the year of 16,000. e. Declared and paid the full years dividend on all the preferred stock and a dividend of 15 per share on common stock outstanding at the end of the year. Enter beginning balances for 2013 on STOCKEQ2. Then erase all 2012 entries and enter the transactions for 2013. Save the results as STOCKEQ4. Print the results.Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000