question 7

20122017 Contributed capital Preferred shares, \$6, 5,000 shares issued and outstanding $ 500,000$500,000 Common shares, 10,000 shares issued and outstanding 500,000400,000 Total contributed capital 1,000,000900,000 Retained earnings 200,000100,000 Total shareholders' equity $1,200,000$1,000,000 Note: The preferred shares are noncumulative, and no dividend was declared during 2020. The book value of each common share in 2020 is: $100 $50 $69 $70