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 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. Assume that the preference shares have a liquidation value of P105 per share. Compute for the book value on prefrence shares for December 31, 2018 and book value on 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.
Assume that the preference shares have a liquidation value of P105 per share.
Compute for the book value on prefrence shares for December 31, 2018 and book value on ordinary shares for December 31, 2018
Step by step
Solved in 2 steps
