Here is the equity accounts of Bloomingdale Company on January 1, 2021.

Share Capital – ordinary ($20 par value)  


$ 2,400,000
Share Capital – preference (6%, $240 par, non cumulative)
$ 1,800,000
Treasury share – ordinary (8,000 share)  


$   128,000
Share Premium – ordinary  




$   300,000
Share Premium – preference




$   500,000
Share Premium – Treasury




$     20,000
Retained earnings





$ 1,276,000

Required:
a. Prepare an equity section at December 31 and interpret the result! (7 points)
b. Compute the book value per share of the ordinary shares, assume that preference share have
a call price of $120 per share! (3 points)