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In September year 1, West Corp. made a dividend distribution
of one right for each of its 120,000 shares of outstanding
common stock. Each right was exercisable for the purchase of
1/100 of a share of West’s $50 variable rate preferred stock at an
exercise price of $80 per share. On March 20, year 3, none of the
rights had been exercised, and West redeemed them by paying
each stockholder $0.10 per right. As a result of this redemption,
West’s stockholders’ equity was reduced by