Part One:

For the year ended December 31, 2020, Gaga Ladys Wear Inc. earned $900,000.

Outstanding preferred shares included $300,000 in 4% cumulative preferred shares issued on January 1, 2015 and $1,000,000 in 6% non-cumulative preferred shares issued on January 1, 2016.

Dividends on the cumulative preferred shares were not declared in 2019.

On December 15, 2020, Gaga declared and paid dividends on the 4% cumulative shares including the arrears.

Gaga also declared and paid the $60,000 dividends on the non-cumulative shares.

Required:

Determine the net income available to ordinary shareholders for the year ended December 31, 2020.