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The Mandella family decided early in $2020$ to incorporate their family owned vineyards under the name Mandella Corporation. The corporation was authorized to issue $500,000$ shares of a single class of $$10$ par value capital stock. Presented as follows is the information necessary to prepare the stockholders$$ equity section of the company$$s balance sheet at the end of $2020$ and at the end of $2021.$

$2020.$ In January the corporation issued to members of the Mandella family $150,000$ shares of capital stock in exchange for cash and other assets used in the operation of the vineyards. The fair market value of these assets indicated an issue price of $$30$ per share. In December, Joe Mandella died, and the corporation purchased $10,000$ shares of its own capital stock from his estate at $$34$ per share. Because of the large cash outlay to acquire this treasury stock, the directors decided not to declare cash dividends in $2020$ and instead declared a $10$ percent stock dividend to be distributed in January $2021.$ The stock price at the declaration date was $$35$ per share. $($The treasury shares do not participate in the stock dividend.$)$ Net income for $2020$ was $$940,000.$

$2021.$ In January the corporation distributed the stock dividend declared in $2020,$ and in February, the $10,000$ treasury shares were sold to Maria Mandella at $$39$ per share. In June, the capital stock was split $2-$for$-1.($Approval was obtained to increase the authorized number of shares to $1$ million.$)$ On December $15,$ the directors declared a cash dividend of $$2$ per share, payable in January $2021.$ Net income for $2021$ was $$1,080,000.$

Required:

a$.$ Prepare the stockholders$$ equity section of the balance sheet at December $31,2020.$

b$.$ Prepare the stockholders$$ equity section of the balance sheet at December $31,2021.$

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