Martinez Companys ledger shows the following balances on December 31, 2015. Instructions Assuming that the directors decide

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Martinez Company’s ledger shows the following balances on December 31, 2015.

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Instructions Assuming that the directors decide to declare total dividends in the amount of €266,000, determine how much each class of shares should receive under each of the conditions stated below. One year’s dividends are in arrears on the preference shares.

(a) The preference shares are cumulative and fully participating.

(b) The preference shares are non-cumulative and non-participating.

(c) The preference shares are non-cumulative and are participating in distributions in excess of a 7%
dividend rate on the ordinary shares.

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Intermediate Accounting IFRS Edition

ISBN: 9781118443965

2nd Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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