Trask Corporation, a public company whose shares are traded in the over-the-counter market, had the following stockholders’ equity account balances at December 31, 2007:

Transactions during 2008 and other information relating to the stockholders’ equity accounts follow:
• As of January 1, 2008, Trask had 4,000,000 authorized shares of \($5\) par-value common stock; it had issued 1,575,000 shares of which 75,000 were held in treasury.

• On January 21, 2008, Trask issued 50,000 shares of \($100\) par value, 6% cumulative preferred stock at par in exchange for all of Rover Company’s assets and liabilities. On that date, the net carrying amount of Rover's assets and liabilities equaled their fair values. On January 22, 2008, Rover distributed the Trask shares to its stockholders in a complete liquidation and dissolution of Rover. Trask had 150,000 authorized shares of preferred stock.
• On February 17, 2008, Trask formally retired 25,000 of 75,000 treasury common stock shares. The shares were originally issued at \($15\) per share and had been acquired on September 25, 2007 for \($10\) per share.
• Trask owned 15,000 shares of Harbor, Inc. common stock purchased in 2007 for \($600,000\).
The Harbor stock shares were trading securities. On March 5, 2008, Trask declared a property dividend of one share of Harbor common stock for every 100 shares of Trask common stock held by a stockholder of record on April 16, 2008. Harbor stock’s market price on March 5, 2008 was \($60\) per share. The property dividend was distributed on April 29, 2008.
• On January 2, 2006, Trask granted stock options to employees to purchase 200,000 shares of the company’s common stock at \($12\) per share, which was also the market price on that date. The options had a grant date fair value of \($1.50\) per share and are exercisable within a three-year period, beginning January 2, 2008. On June 1, 2008, employees exercised 150,000 options when the stock’s market value was \($25\) per share. Trask issued new shares to settle the transaction.
• On October 27, 2008, Trask declared a two-for-one stock split on its common stock and reduced the per share par value accordingly. Trask stockholders of record on August 2, 2008 received one additional share of Trask common stock for each share of Trask common stock held. The laws of Trask’s state of incorporation protect treasury stock from dilution.
• On December 12, 2008, Trask declared the yearly cash dividend on preferred stock, payable on January 11, 2009 to stockholders of record on December 31, 2008.
• On January 16, 2009 before the accounting records were closed for 2008, Trask learned that depreciation expense had been understated by \($350,000\) for the year ended December 31, 2007. The after-tax effect on 2007 net income was \($245,000\). The appropriate correcting entry was recorded on the same day.
Net income for 2008 was \($2,400,000\).
Required:
1. Prepare Trask’s statement of retained earnings for the year ended December 31, 2008.
2. Prepare the stockholders’ equity section of Trask’s balance sheet at December 31, 2008.
3. Compute the book value per share of common stock at December 31, 2008.

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Common stock Additional paid-in capital Retained earnings Treasury common stock $ 7,875,000 15,750,000 16,445,000 750,000