B is corrent. The requirement is to determine the book value per share of Harbor’s common stock. B is corrent because the book value per share is calculated as the total owners’ equity divided by the number of common shares outstanding, or $49 ($2,200,000/45,000 shares outstanding). The number of shares outstanding is 45,000 because the treasury shares are not outstanding shares.
A is incorrect. The requirement is to determine the book value per share of Harbor’s common stock. A is incorrect because the book value per share is calculated as the total owners’ equity divided by the number of common shares outstanding, or $49 ($2,200,000/45,000 shares outstanding). The number of shares outstanding is 45,000 because the treasury shares are not outstanding shares.
C is incorrect. The requirement is to determine the book value per share of Harbor’s common stock. A is incorrect because the book value per share is calculated as the total owners’ equity divided by the number of common shares outstanding, or $49 ($2,200,000/45,000 shares outstanding). The number of shares outstanding is 45,000 because the treasury shares are not outstanding shares.
D is incorrect. The requirement is to determine the book value per share of Harbor’s common stock. D is incorrect because the book value per share is calculated as the total owners’ equity divided by the number of common shares outstanding, or $49 ($2,200,000/45,000 shares outstanding). The number of shares outstanding is 45,000 because the treasury shares are not outstanding shares.
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