Enscoe Enterprises, Inc. (EEI) has 220,000 shares authorized, 170,000 shares issued, and 30,000 shares of treasury stock. At this point, EEI has $1,100,000 of assets. $120,000 liabilities, $400,000 of common stock, and $580,000 of retained earnings. Further, assume that the market value of EEI's common stock is $9 per share. Required a. Determine the number of shares of stock that is outstanding.

Shares Outstanding

Shares

b. Determine the book value per share.

Book Value Per Share

c. Provide a rational explanation for the difference between the book value per share and the market value per share of EEI's common stock.

1.	Market Value is _________ than the book.
2.	___________ is a measure of historical cost, while _________ is a measure of current values.