Response to the following problem:
Aerotronics Enterprises Inc. produces aeronautical navigation equipment. The stockholders' equity accounts of Aerotronics Enterprises Inc., with balances on January 1, 2007, are as follows:
Common Stock, $10 stated value (100,000 shares authorized,60,000 shares issued) $600,000
Paid-In Capital in Excess of Stated Value 150,000
Retained Earnings 497,750
Treasury Stock (7,500 shares, at cost) 120,000