Linzey Corporation has provided the following data: The company's net income in Year 2 was $33,000.The company's book value per share at the end of Year 2 is closest to:

A) $22.45 per share
B) $12.45 per share
C) $0.55 per share
D) $15.45 per share

Book value per share = (total shareholder equity - preferred equity) / number of common shares outstanding
Total shareholder equity = total assets - total liabilities
From the given data, we can calculate:
Total shareholder equity at the end of Year 2 = $260,000 - $155,000 = $105,000
Common shares outstanding = $180,000 / $30 = 6,000 shares
Book value per share = ($105,000 - 0) / 6,000 shares = $17.50 per share
Therefore, the closest answer choice is D) $15.45 per share.

Book value per share = Common stockholders' equity ÷ Number of common shares outstanding*
= $927,000 ÷ 60,000 shares = $15.45 per share (rounded)
*Number of common shares outstanding = Common stock ÷ Par value
= $120,000 ÷ $2 per share = 60,000 shares