The following stockholders' equity accounts arranged alphabetically are in the ledger of McGrath Corporation at December 31, 2006.

Instructions

(a) Prepare a stockholders' equity section at December 31. 2006.

(b) Compute the book value per share of the common stock, assuming the preferred stock has a call price of $1 10 per share.

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Common Stock ($10 stated value) $1,500,000 Paid-in Capital from Treasury Stock 6,000 Paid-in Capital in Excess of Stated Value-Common Stock 690,000 Paid-in Capital in Excess of Par Value-Preferred Stock Preferred Stock (8%. $100 par, noncumulative) 288.400 400,000 Retained Earnings 776.000 Treasury Stock-Common (8,000 shares) 88,000