The question is: A company was organized early in 1990 with authorization to issue an unlimited # of no par value preferred stock and no par par value of common stock. 50,000 preferred stock were issued at $100 each and 600000 shares of common stock were sold for $16/share. The preferred stock pays a $9 cumulative dividend and is callable at $110.

During the first 5 years (1990 - 1994), the corporation earned a total of $6,920,000 and paid a dividend of 50 cents per share each year on the common stock. In 1995, however, the corporation reported a net loss of $2,400,000 and paid no dividends.

Whats the shareholders' equity on Dec 31 1995?