Table 13-4
the Shareholders' Equity Section of the Balance Sheet

question 164

Multiple Choice

Table 13-4
The shareholders' equity section of the balance sheet of Cresco Corporation follows:
$$\begin{array} { | l | r | } \hline \text { Contributed capital: } & \\\hline \text { Preferred shares, cumulative, } \$ 3.50,4,000 \text { shares outstanding, } & \\\hline \text { liquidation value } \$ 56 \text { per share } & \$ 210,000 \\\hline \text { Common shares, } 20,000 \text { shares outstanding } & 397,500 \\\hline \text { Retained earnings } & 138,250 \\\hline\end{array}$$ Note: There are two years of dividends in arrears on the preferred shares, including the current year.
-Refer to Table 13-4.The book value per share for common shares is:

• A) $19.88
• B) $24.69
• C) $26.79
• D) $25.39

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Definitions:

Naphthalene

An aromatic hydrocarbon composed of two fused benzene rings, commonly found in mothballs and used in the production of dyes and plastics.

Aromatic

A class of hydrocarbons that contain one or more benzene rings in their molecular structure, known for their stability and fragrant properties.

Antiaromatic

Compounds that possess conjugated pi electron systems and are less stable due to their ring structure not fulfilling Hückel's rule for aromatic stability.

Nonaromatic

Compounds that are neither aromatic nor antiaromatic; they do not have delocalized pi electrons in a cyclic, conjugated system.