The shareholders' equity section of the balance sheet of The Claremont Company appeared as follows at the end of the first year of operations: Common stock, $0.04par value $240,000
Additional paid-in-capital 35,760,000
Retained earnings 12,800,000
Treasury stock (3,000,000)
Shareholders' equity $45,800,000

During the second year of operations, the following transactions occurred:

1. Generated net income of $2.4 million.
2. Paid a cash dividend of $0.6 million.
3. Purchased 100,000 shares of common stock at $3.8 per share.
4. Executed a 1-for-2 reverse stock split.

Required:
Prepare the shareholders' equity section of the balance sheet of Claremont Company at the end of the second year of operations.