FRANCE, INC. began operations in January 2016, and reported the following results for each of its three years of operations. P300,000 net loss 30,000 net loss 3,950,000 net income 2016 2017 2018 At December 31, 2018, the company's capital accounts were as follows: 5% cumulative preference shares, par value P100; authorized, 100,000 shares; issued and outstanding, 60,000 shares P6,000,000 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.
FRANCE, INC. began operations in January 2016, and reported the following results for each of its three years of operations. P300,000 net loss 30,000 net loss 3,950,000 net income 2016 2017 2018 At December 31, 2018, the company's capital accounts were as follows: 5% cumulative preference shares, par value P100; authorized, 100,000 shares; issued and outstanding, 60,000 shares P6,000,000 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:FRANCE, INC. began operations in January 2016, and reported the following results for each of its three years of
operations.
P300,000 net loss
30,000 net loss
3,950,000 net income
2016
2017
2018
At December 31, 2018, the company's capital accounts were as follows:
5% cumulative preference shares, par value P100;
authorized, 100,000 shares; issued and
outstanding, 60,000 shares
P6,000,000
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.
Transcribed Image Text:Assume 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. Р115
c. P110
b. P120
d. P105
13. What is the book value of the ordinary shares on December 31, 2018?
с. Р13.40
d. P13.02
а. Р13.78
b. P14.15
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