### Compute the book value per share of the common stock

Assignment Help Accounting Basics
##### Reference no: EM13527271

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.

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