Reference no: EM132535136

Nova Corporation has an authorized capital of 10,000 shares of ?100 par, 8% cumulative preferred stock and 20,000 shares of ?100 par common stock. The equity account balances at December 31, 2008 are as follows:

Cumulative preferred stock                                                   500,000

Common stock                                                                  1,100,000

Additional paid in capital                                                       200,000

Retained earnings                                                                260,000

Treasury stock, common-1,000 shares at cost                          (150,000)

Total shareholders' equity                                                      1,910,000

Question 1: Dividends on preferred stock are in arrears for 2007 and 2008. The book value of a share of common stock at December 31, 2008 should be