Exercise 1:

Shown below is information relating to the stockholders' equity of Satellite Corporation at December 31, 2020:

8% preferred stock, 150 par, 10,000 shares authorized, ? shares issued	900,000
Common stock, 6.50 par, 500,000 shares authorized, ? shares issued and outstanding	2,600,000
Additional paid-in capital: preferred stock	132,000
Additional paid in capital: common stock	2,970,000
Retained earnings	1,551,000
(Assume there are no dividends in arrears)

Instructions: Answer the following questions: (a) How many shares were issued of preferred stock? Of common stock? (10 points)

(b) What is the total legal capital? (5 points)

(c) What is the total amount of paid-in capital? (5 points)

(d) What is the average issue price per share of preferred stock? Of common stock? (10 points)

(e) What is the book value per share of common stock? (10 points)

(f) The balance in Retained Earnings at the beginning of the year was 1,237,500, and net income for 2020 was 1,600,500. What was the amount of dividend declared on each share of common stock during 2020? (15 points)