Cartman's Cats has $1,000,000 in assets after purchasing Big Bertha's Birds, along with $500,000 in liabilities, It has 500 shares capital stock outstanding. What is the book value of each share of stock?
A)$1,000
B)$50
C)$500
D)$2,000
E)$500,000

Question

Quizplus · Accepted Answer

The book value of each share of stock is $1,000:
1,000,000 ? 500,000 = 500,000/500 = $1,000
Key Takeaway: The book value of stock is assets ? liabilities. To calculate the per share book value, divide the book value by the number of shares.

Cartman's Cats Has $1,000,000 in Assets After Purchasing Big Bertha's