Shelby Corporation was organized in January 2010 by 10 stockholders to operate an air conditioning sales and service business. The charter issued by the state authorized the following capital stock:
- Common stock, $1 par value, 200,000 shares.
- Preferred stock, $8 par value, 6 percent, 50,000 shares.
During January and February 2010, the following stock transactions were completed:
a. Collected $40,000 cash from each of the 10 organizers and issued 2,000 shares of common stock to each of them.
b. Issued 15,000 shares of preferred stock at $25 per share; collected in cash.
Net income for 2010 was $40,000; cash dividends declared and paid at year-end were $10,000
What is the Additional paid-in capital, preferred stock?