1. The Balance Sheet of Trendline Corp. reported the following at December 31, 20X6.

Requirements

a. Is the preference share cumulative or non-cumulative? How can you tell?

b. What is the total amount of the annual preference dividend?

c. How many ordinary shares are outstanding?

d. Compute the book value per share of the ordinary share. No preference dividends are in arrears, and Trendline has not yet declared the 20X6 dividend.

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A1 1 2 Shareholders' Equity Preference share, 4%, $10 par, 10,000 shares authorized 3 and issued (redemption value, $110,000) 4 Ordinary share, no-par, $5 stated value, 100,000 shares authorized, 50,000 shares issued 5 6 Paid-in capital in excess of par or stated value: 7 Ordinary share 8 Retained earnings 9 Less: Treasury share, Ordinary (1,000 shares) 10 Total shareholders' equity 11 $100,000 250,000 239,500 395,000 (8,000) $976,500