Case $13\mathrm{.}5$

The following information is from the balance sheet of a corporation as of December $31,2008.$ Preferred dividends are in arrears for the $2007$ and $2008.$

Preferred stock, cumulative, $7\%,$$$100$ par,

$6,000$ shares issued

Paid$-$in capital in excess of par $-$ preferred

Common stock, $$5$ par, $20,000$ shares issued

Paid$-$in capital in excess of par $*$ common

Retained earnings

Total stockholders' equity

$[$$$300,000],[30,000],[100,000],[297,500],[138,500],[$$$866,000]$

Refer to Case $13\mathrm{.}5.$ What is the book value for the common stock?

A$)$ The book value is $$19\mathrm{.}88$ per share.

B$)$ The book value is $$22\mathrm{.}60$ per share.

C$)$ The book value is $$5\mathrm{.}00$ per share.

D$)$ The book value is $$28\mathrm{.}30$ per share.

A company originally issued $40,000$ shares of $$5$ common stock at $$8.$ The company has now issued a $5\%$ stock dividend when the market price of the stock is $$10$ a share. What is the amount to be

credited to the common stock account when the shares are distributed?

A$)$ $$20,000$

B$)$ $$10,000$

C$)$ $$45,000$

D$)$ $$16,000$