Haft Corporation has an agreement with each of its 15 preferred and 30 common stockholders that in the event of the death of a stockholder, it will purchase at book value from the stockholder's estate or heirs the shares of Haft Corporation stock held by the deceased at the time of death. The book value is to be computed in accordance with generally accepted accounting principles.

Following is the stockholders' equity section of the Haft Corporation's December 31, 1998 , balance sheet

The preferred stock is cumulative and entitled to \(\$ 300\) per share plus cumulative dividends in liquidation. No dividends have been paid for \(11 / 2\) years.
A stockholder who owned 100 shares of preferred stock and 1,000 shares of common stock died on December 31, 1998. You have been employed by the stockholder's executor to compute the book value of each class of stock and to determine the price to be paid for the stock held by her late husband Required Prepare a schedule showing the computation of the amount to be paid for the deceased stockholder's preferred and common stock.

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Stockholders' equity: Paid-in capital: Preferred stock-without par value, $50 stated value, $15 cumulative, 3,000 shares authorized, issued, and outstanding $ 150,000 Common stock-$62.50 par value, 60,000 shares authorized, issued, and outstarding Paid-in capital in excess of stated value-preferred Paid-in capital in excess of par value-common Total paid-in capital Retained earnings Total stockholders' equity 3,750,000 840,000 30,000 $4,770,000 1,800,000 $6,570,000