Question 20 AUSTERE Co. owns 20% of the ordinary shares of SEVERE, Inc. SEVERE additionally hasredeemable preference shares outstanding with a dividend rate of 6% and a par value of$8,000,000. SEVERE made a profit of $4,000,000 during the year and paid a cash dividend of$150,000 to preference shareholders. How much of SEVERE's profit does AUSTERE get?704,000800,000S/2,000770,000

Explanation of concept Preference Shares are the shares which have been issued with preference right…

AUSTERE Co. owns 20% of the ordinary shares of SEVERE, Inc. SEVERE additiona redeemable preference shares outstanding with a dividend rate of 6% and a par $8,000,000. SEVERE made a profit of $4,000,000 during the year and paid a cash $150,000 to preference shareholders. How much of SEVERE's profit does AUSTER 704.000

AUSTERE Co. owns 20% of the ordinary shares of SEVERE, Inc. SEVERE additiona redeemable preference shares outstanding with a dividend rate of 6% and a par $8,000,000. SEVERE made a profit of $4,000,000 during the year and paid a cash $150,000 to preference shareholders. How much of SEVERE's profit does AUSTER 704.000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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AUSTERE Co. owns 20% of SEVERE, Inc.’s ordinary shares. SEVERE also has outstanding redeemable preference shares with dividend rate of 6% and aggregate par value of ₱8,000,000. During the year, SEVERE reported profit of ₱4,000,000 and declared ₱150,000 cash dividend to preference shareholders. How much is AUSTERE’s share in the profit of SEVERE? 704,000 800,000 512,000 770,000
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