The stockholders’ equity section of Stellar Inc. at thebeginning of the current year appears below.

Common stock, $10 par value, authorized 1,043,000 shares,321,000 shares issued and outstanding$3,210,000Paid-in capital inexcess of par—common stock562,000Retained earnings624,000

During the current year, the following transactionsoccurred:

1) The company issued to the stockholders 109,000 rights. Tenrights are needed to buy one share of stock at $30. The rights werevoid after 30 days. The market price of the stock at this time was$32 per share. 2) The company sold to the public a $204,000, 10% bond issue at104. The company also issued with each $100 bond one detachablestock purchase warrant, which provided for the purchase of commonstock at $28 per share. Shortly after issuance, similar bondswithout warrants were selling at 96 and the warrants at $8. 3) All but 5,450 of the rights issued in (1) were exercised in30 days. 4) At the end of the year, 80% of the warrants in (2) had beenexercised, and the remaining were outstanding and in goodstanding. 5) During the current year, the company granted stock optionsfor 10,800 shares of common stock to company executives. Thecompany, using a fair value option-pricing model, determines thateach option is worth $10. The option price is $28. The options wereto expire at year-end and were considered compensation for thecurrent year. 6) All but 1,080 shares related to the stock-option plan wereexercised by year-end. The expiration resulted because one of theexecutives failed to fulfill an obligation related to theemployment contract. Prepare the stockholders’ equity section of the balance sheet atthe end of the current year. Assume that retained earnings at theend of the current year is $771,000.