The equity sections for Hovo Corp. at the beginning of the year (January 1) and end of the year (December 31) follow.

The following transactions and events affected its equity during the year.

Required

1. How many common shares are outstanding on each cash dividend date?

2. What is the total dollar amount for each of the four cash dividends?

3. What is the amount of retained earnings transferred to paid-in capital accounts (capitalized) for the stock dividend?

4. What is the per share cost of the treasury stock purchased?

5. How much net income did the company earn this year?

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Stockholders' Equity (January 1) Common stock-$20 par value, 30,000 shares authorized, 17,000 shares issued and outstanding.. Paid-in capital in excess of par value, common stock.. Retained earnings... Total stockholders' equity $340,000 60,000 270,000 $670,000 Stockholders' Equity (December 31) Common stock-$20 par value, 30,000 shares authorized, 19,000 shares issued, 1,000 shares in treasury..... Paid-in capital in excess of par value, common stock... Retained earnings ($40,000 restricted by treasury stock). $380,000 104,000 295,200 Less cost of treasury stock. Total stockholders' equity 779,200 (40,000) $739,200