1. Lala Corporation had 50,000 ordinary shares of P 100 par value and 25,000 preference shares of P 100 par value, 5% cumulative and participating up to 4%. Dividends on the preference shares are two years in arrears before the current year. The entity distributed P 1,350,000 as dividends in the current year. What is the dividend payable to the ordinary shareholders?

a) P 475,000

b) P 250,000

c) P 125,000

d) P 875,000

2. The capital accounts of Coco Inc. as of March 31, 2019, show the following balances:

5% Preference Share Capital, 5,000 shares outstanding, P 20 par P 100,000

Ordinary Share Capital, 30,000 shares outstanding, P 10 par 300,000

Retained Earnings 465,000

Dividends were last declared in March 2016, the company declared cash dividends of P 60,000 on March 31, 2019. How much is the dividend per share of preference and ordinary, assuming preference share is cumulative and fully participating?

a) P 20.00 for preference share and P 10.00 for ordinary share

b) P 5.00 for preference share and P 1.17 for ordinary share

c) P 4.50 for preference share and P 1.25 for ordinary share

d) P 3.00 for preference share and P 1.50 for ordinary share