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Point 1: When Resisto Systems, Inc., was formed, the company was authorized to issue 5,000 shares of $100 par value, 8 percent cumulative preferred stock, and 100,000 shares of $2 stated value common stock.
Point 2: Half of the preferred stock was issued at a price of $104 per share, and 58,000 shares of the common stock were sold for $24 per share. At the end of the current year, Resisto has retained earnings of $382,000.
Question 1: Prepare the stockholders' equity section of the company's balance sheet at the end of the current year.
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