1.) On December 31, 2020, ZEN Inc. reported a net income of P2,000,000. The following data are provided by ZEN concerning its shareholders equity: Ordinary shares at P10/par, P1,000,000; Share premium, 500,000; Subscribed ordinary shares, 300,000; Subscription receivable collectible beyond one year, 50,000; Treasury shares at cost (P12/share), 300,000; Cumulative-participating preference shares 10%, P2,000,000; and Outstanding preference shares 100,000. The dividends on preference shares are in arrears for two years before December 31, 2020. No dividends were on preference shares were declared on year 2020. What is the basic earnings per share for preference shareholders for the year ended December 31, 2020?

a. P6.00

b. P2.00

c. None

2.) Which statement about property dividend is not true? *

a. All of these statements are true.

b. The accounting for a property dividend should be based on the carrying amount of the noncash asset transferred.

c. A property dividend is usually in the form of securities of other entities.

d. A property dividend is also called a dividend in kind.

3.) When a share dividend is declared

a. Total shareholders equity does not change

b. The current ratio increases

c. The amount of working capital decreases

d. Total shareholders equity decreases