Reference no: EM132494344

The partial trial balance for ABC Co. as at December 31, 20x2 is as follows:

                                                                   20x2                          20x1

Common shares                                  $17,045,917         $15,500,000

Contributed Surplus - Stock Options         120,000            300,000

Retained earnings                                   4,736,776         4,650,000

Point 1: There are 52,000 stock options which vested on December 31, 20x1 at an exercise price of $31 per share. The exercise period for this plan started on Jan 1, 20x2 and ends on December 31, 20x3.

Point 2: There were 650,000 shares outstanding at the beginning of the year. No dividends were declared during the year. The net income for the year was $850,000.

The following transactions took place in 20x2:

Mar 1: Issued 100,000 common shares for $400,000

May 31: Holders of stock options exercised their stock options

Sep 30: Repurchased and cancelled 30,000 shares

Problem 1:  How to calculate the book value per share immediately before the Sep 30 transaction?