Compute the following:

5. Assuming that on July 1, 2020, Kangaroo Company purchased its own share at P10.00. How much is the book value per share for the year 2020? 6. Assuming that there is a cumulative and participating preference share, how this will affect the book value per share computation? Explain briefly.

Problem 1 The balance sheet of Kangaroo Company as of December 31 is presented below: Assets 2019 2020 Cash P 45,000 P 60,000 Marketable Securities 60,000 85,000 Accounts Receivable (net) 60,000 80,000 Inventory 70,000 100,000 Property, plant and Equipment 300,000 300,000 Accumulated Depreciation (45,000) (80,000) Total Assets P490,000 P545,000 Liabilities and Shareholder's Equity Accounts Payable Short-term Notes Payable Bonds Payable Ordinary Shares Retained Earnings Total Liabilities and Shareholder's Equity 35,000 50,000 85,000 200,000 120,000 P490,000 45,000 50,000 75,000 225,000 150,000 P545,000 Ordinary shares have par value of P5.00 per share. In April 1, 2020, the Kangaroo Company issued additional shares as part of its funding plan