In fiscal 2017 the district increases the number of vacation days to which employees are entitled to take, thereby increasing the cost of vacation leave that employees earned in 2017 but will take in subsequent fiscal years by $250,000. the vacation days vest; they can be taken as termination benefits.

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Part 1:

Part 2:

Explanation:

Part 1: (the book value per share of the preferred and common stock under No preferred dividends are in arrears)

Book value per share of the preferred :

In our case Cumulative dividends=0

Book value per share of the common stock:In our case Cumulative dividends=0

Part 2:

Annual Preferred Dividend=4%*$25*10,000=$10,000

Three years of preferred dividends are in arrears= 3*Annual Preferred Dividend

Three years of preferred dividends are in arrears= 3*$10000=$30,000

Formula for  the book value per share of the preferred is same as above,so we will direct calculate:

In our case Cumulative dividends=$30,000

Book value per share of the preferred :

Book value per share of the common stock:

Formula for  the book value per share of the common stock is same as above,so we will direct calculate: