Compute for the book value of preference shares on December 31, 2018 and book value of ordinary shares for December 31, 2018.
FRANCE, INC. began operations in January 2016, and reported the following results for each of its three years of operations.
2016 P300,000 net loss
2017 30,000 net loss
2018 3,950,000 net income
At December 31, 2018, the company's capital accounts were as follows:
5% cumulative
Ordinary shares, par value P10; authorized, 1,000,000 shares; issued and outstanding, 800,000 shares 8,000,000
France, Inc. has never paid a cash or stock dividend and there has been no change in the capital accounts since it began operations.
Compute for the book value of preference shares on December 31, 2018 and book value of ordinary shares for December 31, 2018.
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