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    Stockholders Equity transactions

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    The stockholders' equity section of Linton Corporation at December 31 is as follows.

    LINTON CORPORATION
    Balance Sheet (partial)
    Paid-in capital
    Preferred stock, cumulative, 10,000 shares authorized,
    5,000 shares issued and outstanding $ 300,000
    Common Stock, no par, 750,000 shares authorized, 300,000 shares issued 1,500,000
    Total paid-in capital 1,800,000
    Retained earnings 2,050,000
    Total paid-in capital and retained earnings 3,850,000
    Less: Treasury stock (5,000 common shares) (64,000)
    Total stockholders' equity $3,786,000

    (a) How many shares of common stock are outstanding?
    (b) Assuming there is a stated value, what is the stated value of the common stock?
    (c) What is the par value of the preferred stock?
    (d) If the annual dividend on preferred stock is $18,000, what is the dividend rate on preferred stock?
    (e) If dividends of $36,000 were in arrears on preferred stock, what would be the balance in Retained Earnings?

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    (a) How many shares of common stock are outstanding?

    Outstanding shares = Shares issued - treasury stock
    = 300,000 - 5,000 = 295,000 shares

    (b) Assuming there is a stated value, what is the stated value of the common stock?

    Stated value ...

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