The following stockholders' equity accounts arranged alphabetically are in the ledger of McGrath Corporation at December 31, 2011.
|
Common Stock ($10 stated value)
|
$1,500,000
|
|
Paid-in Capital from Treasury Stock
|
6,000
|
|
Paid-in Capital in Excess of Stated Value-Common Stock
|
690,000
|
|
Paid-in Capital in Excess of Par Value-Preferred Stock
|
288,400
|
|
Preferred Stock (8%, $100 par, noncumulative)
|
400,000
|
|
Retained Earnings
|
776,000
|
|
Treasury Stock-Common (8,000 shares)
|
88,000
|
Instructions
(a) Prepare a stockholders' equity section at December 31, 2011.
(b) Compute the book value per share of the common stock, assuming the preferred stock has a call price of $110 per share.