ABC Co. has authorized share capital of 10,000 8% cumulative preference shares with P100 par value and 100,000 ordinary shares with P10 par value. ABC Co. reported this on December 31,2020: Preference share capital P500,000 Ordinary share capital Share premium Retained Earnings 900,000 90,000 138,000 Treasury ordinary shares – 1,000 at cost Shareholders' equity (20,000) P1,608,000 Dividends on preference shares are in arrears for the current year. If ABC Co. is liquidated, how much would be received by Mr Chris Pin who holds 20,000 voting shares?
ABC Co. has authorized share capital of 10,000 8% cumulative preference shares with P100 par value and 100,000 ordinary shares with P10 par value. ABC Co. reported this on December 31,2020: Preference share capital P500,000 Ordinary share capital Share premium Retained Earnings 900,000 90,000 138,000 Treasury ordinary shares – 1,000 at cost Shareholders' equity (20,000) P1,608,000 Dividends on preference shares are in arrears for the current year. If ABC Co. is liquidated, how much would be received by Mr Chris Pin who holds 20,000 voting shares?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
If ABC Co. is liquidated, how much would be received by Mr. Chris Pin who holds 20,000 voting shares?
P361,600
P249,000
P240,000
P237,400
answer not given
Transcribed Image Text:ABC Co. has authorized share capital of 10,000 8% cumulative
preference shares with P100 par value and 100,000 ordinary
shares with P10 par value. ABC Co. reported this on December
31,2020:
Preference share capital
P500,000
900,000
Ordinary share capital
Share premium
Retained Earnings
90,000
138,000
Treasury ordinary shares – 1,000 at cost
Shareholders' equity
(20,000)
P1,608,000
-
Dividends on preference shares are in arrears for the current
year. If ABC Co. is liquidated, how much would be received by Mr
Chris Pin who holds 20,000 voting shares?
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