Morgan Sondgeroth Inc. began operations in January 2012 and reported the following results for each of its 3 years of operations.

2012 $286,400 net loss 2013 $55,400 net loss 2014 $702,200 net income

At December 31, 2014, Morgan Sondgeroth Inc. capital accounts were as follows.

6% cumulative preferred stock, par value $100; authorized, issued, and outstanding 6,260 shares $626,000 Common stock, par value $1.00; authorized 1,000,000 shares; issued and outstanding 751,000 shares $751,000

Morgan Sondgeroth Inc. has never paid a cash or stock dividend. There has been no change in the capital accounts since Sondgeroth began operations. The state law permits dividends only from retained earnings.

(a) Compute the book value of the common stock at December 31, 2014. (Round answers to 2 decimal places, e.g. $38.50.)

b) Compute the book value of the common stock at December 31, 2014, assuming that the preferred stock has a liquidating value of $106 per share. (Round answers to 2 decimal places, e.g. $38.50.)