From the following information determine the book value for preferred and common stock assuming $12,000 of dividends

Question:

From the following information determine the book value for preferred and assuming $12,000 of dividends are in arrears on the preferred stock.
Stockholders’ Equity
Preferred 10% Stock cumulative and nonparticipating, $25 par value,
$23 redemption value, 12,000 shares issued and outstanding ...... $300,000
Common Stock, $10 par value, 30,000 shares issued and outstanding .. 300,000
Retained Earnings .......................... 78,000
Total Stockholders’ Equity ...................... $678,000

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...