Early in 2013, Feller Corporation was formed with authorization to issue 50,000 shares of $1 par value common stock. All shares were issued at a price of $8 per share. The corporation reported net income of $95,000 in 2013, $27,500 in 2014, and $75,700 in 2015. No dividends were declared in any of these three years.

In 2014, the company purchased its own shares for $35,000 in the open market. In 2015, it reissued all of its treasury stock for $40,000.

Instructions

a.

Prepare the stockholders equity section of the balance sheet at December 31, 2015. Include a supporting schedule showing your computation of retained earnings at the balance sheet date. (Hint: Income increases retained earnings.)

b.	As of December 31, compute the companys book value per share of common stock. (Round your answer to 2 decimal places.)