The balance sheet of Tulameen Systems Inc. reported the following:

                                                Shareholders' Equity

Preferred shares, cumulative convertible; authorized 25,000 shares..........$200,000

Common shares, authorized 50,000 shares; issued 44,000 shares...............528,000

Retained earnings.....................................................................168,000

Total shareholders' equity..........................................................$896,000

Notes to the financial statements indicate that 10,000 $1.20 preferred shares were issued and outstanding. The preferred shares have a liquidation value of $24.00 per share. Preferred dividends are in arrears for two years, including the current year. On the balance sheet date, the market value of the Tulameen Systems Inc. common shares was $28.00 per share.

Required

1. Are the preferred shares cumulative or noncumulative? How can you tell?

2. What is the total contributed capital of the company?

3. What is the total market value of the common shares?

4. Compute the book value per share of the preferred shares and of the common shares.