Comparative statements of shareholders' equity for Anaconda International Corporation were reported as follows for the fiscal years ending December 31, 2018, 2019, and 2020.

Required:
1. Infer from the statements the events and transactions that affected Anaconda International Corporation's shareholders' equity during 2018, 2019, and 2020. Prepare the journal entries that reflect those events and transactions.
2. Prepare the shareholders' equity section of Anaconda's comparative balance sheets at December 31, 2020 and 2019.

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ANACONDA INTERNATIONAL CORPORATION Statements of Shareholders' Equity For the Years Ended Dec. 31, 2018, 2019, and 2020 S in millions) Preferred Common Additional Stock Paid-ln Retained Shareholders $10 par $1 par CaptaEarnings Balance at January 1, 2018 495 470 63 1,878 2,428 480 70 10 Sale of preferred shares Sale of common shares Cash dividend, preferred Cash dividend, common Net income (16) (16) 290 10 1,028 (27) Balance at December 31, 2018 62 2,151 3,251 Retirement of shares Cash dividend, preferred Cash dividend, common 3-for-2 split effected in the (50) (20) (20) form of a dividend Net income 380 15 2,490 (65) Balance at December 31, 2019 996 59 3,560 Common stock dividend Cash dividend, preferred Cash dividend, common Net income (22) 412 (22) 412 Balance at December 31, 2020 15 65 1,055 2,814 3,949