McGrath Corp 1500000

Price: $2.50


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.