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CP 11–9

19 August, 2015 - 14:28

The following information is extracted from the shareholders’ equity section of the balance sheet of Gibson Clothing Inc. at December 31, 2016:

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Additional information:
a. There are $2,000 of dividends in arrears on the preferred shares.
b. The liquidation value of the preferred shares is $25,000.
 

Required: Calculate the book value of preferred and common shares.