On December 31, 2020, University Security Inc. showed the following:
 

University Security Inc.
Equity Section of Balance Sheet
December 31, 2020
Contributed capital:
Preferred shares, $5.4, unlimited shares authorized, 15,400 shares issued and outstanding*	$	322,000
Common shares, unlimited shares authorized, 36,400 shares issued and outstanding*		469,000
Total contributed capital	$	791,000
Retained earnings		966,000
Total equity	$	1,757,000

*All of the shares had been issued early in 2019.

Required:
Part 1:
Calculate book value per common share and preferred share at December 31, 2020, assuming no dividends were declared for the years ended December 31, 2019 or 2020, and that the preferred shares are:

a. Cumulative. (Round the final answers to 2 decimal places.)
b. Non-cumulative. (Round the final answers to 2 decimal places.)
 
Part 2:
Calculate book value per common share and preferred share at December 31, 2020, assuming total dividends of $98,000 were declared and paid in each of the years ended December 31, 2019 and 2020, and that the preferred shares are:

c. Cumulative. (Round the final answers to 2 decimal places.)   
d. Non-cumulative. (Round the final answers to 2 decimal places.)   

Answer rating: 100% (QA)

Part 1 a Book value per common share Book value per pref... View the full answer