A firm has a balance sheet common shares account with a value of $540,000. The firm has 40,000common shares outstanding. If the preferred shares account has a value of $250,000, the commonstock originally sold for

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To find the value of each common share, we need to subtract the preferred shares value from the total common and preferred shares value and then divide the result by the number of common shares outstanding.

Total common and preferred shares value = $540,000 + $250,000 = $790,000

Value per common share = ($790,000 - $250,000) / 40,000 = $13.50

Therefore, the common stock originally sold for $13.50/share.

A Firm Has a Balance Sheet Common Shares Account with a Value