Shareholdersâ Equity Preferred stock, $100 par value;authorized, 330,000 shares; issued, 33,000 shares $3,300,000 Commonstock, $5 par value; authorized, 2,200,000 shares; issued, 440,000shares 2,200,000 Paid-in capital in excess of parâpreferred 99,000Paid-in capital in excess of parâcommon 935,000 Retained earnings2,200,000 $8,734,000 The following events occurred during 2013:Jan. 5 50,000 shares of authorized and unissued common stock weresold for $8 per share. Jan. 16 50,000 shares of authorized andunissued preferred stock were sold for $107 per share. April 190,000 shares of common stock were repurchased for the treasury ata price of $19 per share. Superior uses the cost method to accountfor treasury stock. Sept. 1 5,000 shares of preferred stock areissued in exchange for a piece of land. The land has an appraisedvalue of $542,000. The preferred stock currently trades on the NewYork Stock exchange at a price of $107 per share. Dec. 1 15,000shares of treasury stock are reissued at a price of $24 pershare
3. Calculate Superior's legal capital at December 31, 2013.Total legal capital : $
I need help with #3. Please explain how you got the answer.
Shareholdersâ Equity Preferred stock, $100 par value;authorized, 330,000 shares; issued, 33,000 shares $3,300,000 Commonstock, $5 par value; authorized, 2,200,000 shares; issued, 440,000shares 2,200,000 Paid-in capital in excess of parâpreferred 99,000Paid-in capital in excess of parâcommon 935,000 Retained earnings2,200,000 $8,734,000 The following events occurred during 2013:Jan. 5 50,000 shares of authorized and unissued common stock weresold for $8 per share. Jan. 16 50,000 shares of authorized andunissued preferred stock were sold for $107 per share. April 190,000 shares of common stock were repurchased for the treasury ata price of $19 per share. Superior uses the cost method to accountfor treasury stock. Sept. 1 5,000 shares of preferred stock areissued in exchange for a piece of land. The land has an appraisedvalue of $542,000. The preferred stock currently trades on the NewYork Stock exchange at a price of $107 per share. Dec. 1 15,000shares of treasury stock are reissued at a price of $24 pershare
3. Calculate Superior's legal capital at December 31, 2013.Total legal capital : $
I need help with #3. Please explain how you got the answer.