The following information is extracted from the shareholders' equity section of the balance sheet of Gibson Clothing Inc. at December 31, 2016:
Preferred shares, stated value $10, non-cumulative
Issued and outstanding - 5,000 shares $ 20,000
Common shares, stated value $2
Issued and outstanding - 20,000 shares
40,000
Retained earnings 150,000
Total shareholders' equity $210,000
a. There are $2,000 of dividends in arrears on the preferred shares.
b. The liquidation value of the preferred shares is $25,000.
Required: Calculate the book value of preferred and common shares.