Book and liquidation value The balance sheet for Gallinas Industries is as follows.

Additional information with respect to the firm is available:
(1) Preferred stock can be liquidated at book value.
(2) Accounts receivable and inventories can be liquidated at 90% of book value.
(3) The firm has 10,000 shares of common stock outstanding.
(4) All interest and dividends are currently paid up.
(5) Land and buildings can be liquidated at 130% of book value.
(6) Machinery and equipment can be liquidated at 70% of book value.
(7) Cash and marketable securities can be liquidated at book value.
Given this information, answer the following:
a. What is Gallinas Industries' book value per share?
b. What is its liquidation value per share?
c. Compare, contrast, and discuss the values found in parts a and b.

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Gallinas Industries Balance Sheet December 31 Liabilities and Stockholders Equity Accounts payable Notes payable Accrued wages Assets $ 40,000 60,000 120,000 160,.000 $380,000 $150,000 250,000 $400,000 $100,000 30,000 30,000 $160,000 $180,000 80,000 260,000 100,000 $780,000 Cash Marketable sccunties Accounts receivable Total current liabilities Long-term debt Preferred stock Common stock (10,000 shares) Retained earnings Total current assets Land and buildings (net) Machinery and equipmem Total fixed assets (net) Total assets Total liabilities and stockholders' equity