Kirk and Kirk, Ltd. began operations in July 2013 and reported the following results for each of its first 3 years of operations.
2013 ........ $20,000 net income
2014 ........ $640,000 net loss
2015 ........ $950,000 net income
At December 31, 2015, Kirk and Kirk, Ltd.’s capital accounts were as follows.
16% cumulative preferred stock, par value $100; authorized, issued,
and outstanding 1,000 shares ................ $100,000
Common stock, par value $1; authorized 10,000,000 shares;
issued and outstanding 50,000 shares ........... 50,000
Kirk and Kirk, Ltd. has never paid a cash or stock dividend. There has been no change in the capital accounts since Kirk and Kirk, Ltd. began operations. The state law permits dividends only from retained earnings.

Instructions
(a) Compute the book value of the common stock at December 31, 2015.
(b) Compute the book value of the common stock at December 31, 2015, assuming that the preferred stock has a liquidating value of $103 per share.