What distinct features does a corporation have? Please explain.
During the year ended December 31, 2018, the company had the following share transactions:
Jan. 10 Issued 100,000 ordinary shares at €8 per share.
July 1 Issued 20,000
Sept. 1 Declared 5% share dividends to ordinaryshareholders of record on September 15,distributable September 30. The price of the ordinary shares was €10 per share onSeptember 1, €12 per share on September 15, and €11 per share on September 30.
Nov. 1 Issued 5,000 preference shares at €40 per share.
Dec. 24 Declared an annual cash dividend to preference shareholders of record on January 15, payable January 31.
Dec. 31 A loan agreement entered into on December 31 contains a restrictive covenant that limits the payment of future dividends to 15% of profit.
In addition, Cervantes reported profit of €392,000 for the year.
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