On December 31, 2019, the capital accounts were: Preference share capital, P100 par, 12% participating and cumulative, 100,000 shares 10,000,000 Preference share capital P100 par, 10% nonparticipating, Noncumulative, 50,000 shares 5,000,000 Ordinary share capital, P10 par, 1,000,000 shares 10,000,000 The entity has never paid cash or share dividend. The capital accounts have not changed since the entity began operations. If the maximum amount available for cash dividends is declared on December 31, 2019, what amount of dividend is payable to 12% Preference Shareholders? 10% Preference Shareholders
An entity began operations January 1, 2015 and reported the following net income or loss for five years of operations:
2015 1,500,000 loss
2016 1,300,000 loss
2017 1,200,000 loss
2018 4,500,000 income
2019 9,000,000 income
On December 31, 2019, the capital accounts were:
100,000 shares 10,000,000
Preference share capital P100 par, 10% nonparticipating,
Noncumulative, 50,000 shares 5,000,000 Ordinary share capital, P10 par, 1,000,000 shares 10,000,000
The entity has never paid cash or share dividend. The capital accounts have not changed since the entity began operations.
If the maximum amount available for cash dividends is declared on December 31, 2019, what amount of dividend is payable to
- 12% Preference Shareholders?
- 10% Preference Shareholders?
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