Answer and Explanation:
The preparation of the stockholder equity section of the balance sheet is presented below:
Preferred stock (1,600 shares × $103) $164,800
Common stock (110,000 shares × $4) $440,000
Paid in capital in excess of par- preferred stock $29,900
Paid in capital in excess of par- common stock $259,000
Retained earnings $369,000
Accumulated other comprehensive income $68,000
Less: treasury stock -$52,000
Stockholder equity $1,278,700