FRANCE, INC. began operations in January 2016, and reported the following results for each of its three years ofoperations.P300,000 net loss30,000 net loss3,950,000 net income201620172018At December 31, 2018, the company's capital accounts were as follows:5% cumulative preference shares, par value P100;authorized, 100,000 shares; issued andoutstanding, 60,000 sharesP6,000,000Ordinary shares, par value P10; authorized,1,000,000 shares; issued and outstanding,800,000 shares8,000,000France, Inc. has never paid a cash or stock dividend and there has been no change in the capital accounts since itbegan operations.10. What is the book value of the preference shares on December 31, 2018?а. Р105с. Р100b. P110d. P11511. What is the book value of the ordinary shares on December31 2018?a. P13.40c. P14.15b. P14.52d. P13.78Assume that the preference shares have a liquidation value of P105 per share.12. What is the book value of the preference shares on December 31, 2018?а. Р115c. P110b. P120d. P10513. What is the book value of the ordinary shares on December 31, 2018?с. Р13.40d. P13.02а. Р13.78b. P14.15

Answers – (d) P115 (a) P13.40 (b) P120 (d) P13.02

Answered: 10. What is the book value of the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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