Assets Thoughtfully respond to the case below. In your response, explain your reasoning and include your work on how you calculated any numerical answers You may want to attach a spreadsheet if the calculations are complex. CA15.1 (LO) (Preemptive Rights and Dilution of Ownership) Wallace Computer Company is a small, closely held corporation. Eighty percent of the stock ls held by Derek Wallace, president of the remainder, 10% is held by members of his family and 10 by Kathy Baker, a former officer who is now retired. The balance sheet of the company at June 30, 2020, was substantially as shown below Liabilities and Stockholders' Equity Cash $ 22,000 Current liabilities $ 30,000 Other 450.000 Common stock 250,000 $:5722.000 Retained earnings 122.000 $470.000 Additional authorized common stock of $300,000 par valse had never been moed. To strengthen the cash position of the company, Wallace issued common stock with a par value of $100,000 to himself at par for cash. At the next stockholders' meeting. Baker objected and claimed that her interests had been injured. Instructions a. Which stockholder's right was ignored in the ine of shares to Derek Wallace? b. How may the damage to Baker's interests be repaired most simply Derek Wallace offered Baker a personal cash wettement and they agreed to employ you as an impartial arbitrator to determine the amount, what settlement would you propose? Present your calculations with sufficient explanation to satisfy both parties