Stockholders' equity The stockholders' equity section of the balance sheet of Nautilus Corporation at December 31, 2015, appears as follows:

Answer the following questions based on the stockholders' equity section given above. Each question is a separate situation, unless otherwise indicated.

(a) What is the total dollar amount paid annually as dividends to preferred stockholders?
(b) What was the average issue price per share of preferred stock?
(c) What was the average issue price per share of common stock?
(d) How many shares of common stock are outstanding?
(e) What is the book value per share of the common stock?
(f) If all the treasury stock is reissued at a price of $45 per share, what amount will be credited to the account Additional Paid-In Capital: Treasury Stock Transactions?

What will be an ideal response?

(a) $100 par × 8% × 14,000 shares = $112,000
(b) ($1,400,000 + $344,000) ÷ 14,000 shares = $124.57 per share
(c) ($1,000,000 + $2,835,000) ÷ 100,000 shares issued = $38.35 per share
(d) 100,000 shares issued - 4,000 shares held in treasury = 96,000 shares
(e) ($6,699,000 - $112,000 - $1,400,000) = $5,187,000 ÷ 96,000 shares outstanding = $54.03 per share
(f) ($45 × 4,000 shares) - $160,000 = $20,000