Use the following information for questions 64 through 69.
The following data are provided: Additional information:
Depreciation included in cost of goods sold and operating expenses is $610,000. On May 1, 2015, 30,000 shares of common stock were issued. The preferred stock is cumulative. The preferred dividends were not declared during 2015.
-The book value per share of common stock at 12/31/15 is
A) 3,900 ÷ 120.
B) 3,880 ÷ 120.
C) 3,900 ÷ 110.
D) 4,000 ÷ 110.

Question

Use the following information for questions 64 through 69.
The following data are provided:  Additional information:
Depreciation included in cost of goods sold and operating expenses is $610,000. On May 1, 2015, 30,000 shares of common stock were issued. The preferred stock is cumulative. The preferred dividends were not declared during 2015.
-The book value per share of common stock at 12/31/15 is
A) 3,900 ÷ 120. 
B) 3,880 ÷ 120. 
C) 3,900 ÷ 110. 
D) 4,000 ÷ 110.

Quizplus · Accepted Answer

The book value per share is calculated by dividing the total equity available to common shareholders by the number of outstanding shares. Here, 3,900 is divided by 120, which represents the total equity and the number of shares, respectively.

Use the Following Information for Questions 64 Through 69