Interpreting the Stockholders' Equity Section
the Stockholders' Equity Section of the Balance

Interpreting the stockholders' equity section
The stockholders' equity section of the balance sheet of Benson Corporation (with certain details omitted) appears below:
Answer the following questions based on the stockholders' equity section given above.
(a) What is the total amount of legal capital?
(b) What is the total amount of dividends paid annually to the preferred stockholders?
(c) What is the average issue price of a share of common stock?
(d) The balance in retained earnings at the beginning of the current year was $575,000, and there were no dividends in arrears. Net income for the current year was $360,000. What is the amount of the dividends declared on each share of common stock during the current year?
$$\begin{array}{l}\begin{array} { |l | l| } \hline\text { Stockholders' equity: }\\\hline 6 \% \text { preferred stock, } \$ 100 \text { par, } 50,000 \text { shares } & \\\hline \text { authorized and issued, ?? shares issued } & \$ 700,000 \\\hline \text { Common Stock, } \$ 25 \text { par, } 50,000 \text { shares authorized, } & \\\hline \text { ?? shares issued } & 625,000 \\\hline \text { Additional paid-in capital: } & \\\hline \text { Preferred stock } & 35,000 \\\hline \text { Common stock } & \underline { 375,000 } \\\hline\\\hline \text { Total paid-in capital } & \$ 1,735,000 \\\hline \text { Retained earnings } & \underline { 740,000 } \\\hline\\\hline \text { Total stockholders' equity } & \underline { \$ 2,475,000 } \\\hline\end{array}\end{array}$$