*P12-7B The following stockholders’ equity accounts arranged alphabetically are in the ledger

Price: $2.50


The following stockholders’ equity accounts arranged alphabetically are in the ledger
of Rizzo Corporation at December 31, 2008.

Common Stock ($5 stated value)					2,500,000
Paid-in Capital from Treasury Stock					10,000
Paid-in Capital in Excess of Stated Value—Common Stock					1,600,000
Paid-in Capital in Excess of Par Value—Preferred Stock					679,000
Preferred Stock (8%, $50 par, noncumulative)					800,000
Retained Earnings					1,448,000
Treasury Stock—Common (10,000 shares)					130,000

Instructions
(a) Prepare a stockholders’ equity section at December 31, 2008.
(b) Compute the book value per share of the common stock, assuming the preferred stock has a
call price of $60 per share