Finance Question

Peck Corporation is authorized to issue 20,000 shares of $50 par value,
 10% preferred stock and 125,000 shares of $5 par value common stock. On January 1, 2017, the ledger contained the following stockholders’ equity balances.

Preferred Stock (10,000 shares)…………………………………………………$500,000

Paid-in Capital in Excess of Par—Preferred Stock………………………75,000

Common Stock (70,000 shares)…………………………………………………..350,000

Paid-in Capital in Excess of Par—Common Stock……………………700,000

Retained Earnings………………………………………………………………………….300,000

During 2017, the following transactions occurred.

Feb. 1 Issued 2,000 shares of preferred stock for land having a fair value of $120,000.

Mar. 1 Issued 1,000 shares of preferred stock for cash at $65 per share.

July 1 Issued 16,000 shares of common stock for cash at $7 per share.

Sept. 1 Issued 400 shares of preferred stock for a patent. The asking price of the patent was $30,000. Market price for the preferred stock was $70 and the fair value for the patent was indeterminable.

Dec. 1 Issued 8,000 shares of common stock for cash at $7.50 per share.

Dec. 31 Net income for the year was $260,000. No dividends were declared.

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