From the following information determine the book value for preferred and common stock assuming $12,000 of dividends are in arrears on the preferred stock.
Stockholders’ Equity
Preferred 10% Stock cumulative and nonparticipating, $25 par value,
$23 redemption value, 12,000 shares issued and outstanding ...... $300,000
Common Stock, $10 par value, 30,000 shares issued and outstanding .. 300,000
Retained Earnings .......................... 78,000
Total Stockholders’ Equity ...................... $678,000