Zu Corp. has the following items in shareholders’ equity at 31 December 20X8:

The following transactions and events happened in 20X9, in chronological order:
a. A cash dividend of $38,000 was declared and paid.
b. 4,000 additional common shares were issued for land. The land was valued at $50,000, while recent transactions in common shares indicated a share value of $75,000.
c. Treasury shares (common), 500 shares were bought at $12,500.
d. Preferred shares, 500 shares, were purchased and retired for $130 per share.
e. Treasury shares, 600 shares, were reissued at $15 per share.
f. A common stock dividend of 10% was issued. Treasury shares were considered ineligible for the stock dividend, by order of the board of directors. The stock dividend resulted in a number of whole shares issued, but 350 shares had to be issued in the form of fractional share rights, still outstanding at year-end. The dividend was valued at $40 per share.
g. Earnings for the year were $1,450,000.

Required:
1. From (a), specify the amount of cash dividend to the preferred shareholders, and the dividend to the common shareholders.
2. Calculate the final balance in each shareholders’ equity account.
3. From (b), justify the value used to record the common shares issued.

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Preferred shares, $0.60 cumulative dividend, participating with common shares after the common shares have received $0.30 per share, 15,000 shares authorized and 4,000 shares issued and outstanding. Participation is based on the relative annual total base dividends. Common shares, unlimited shares issued, 93,000 shares issued and 92,000 shares outstanding Contributed capital on preferred share retirement Retained earnings Treasury stock, common, 1,000 shares $360,000 1,080,000 17,000 4,356,900 18,000