Shareholders' Equity ($ in millions)
Common stock, 240 million shares at $1 par $ 240
Paid-in capital—excess of par 1,680
Paid-in capital—share repurchase 1
Retained earnings 1,100

On November 14, 2023, the corporation sold 2 million shares at $7 per share.

2. Prepare the shareholders’ equity section of TNL Systems’ balance sheet at December 31, 2023, comparing the two approaches. Assume all net income earned in 2021–2023 was distributed to shareholders as cash dividends.