Question #1

King Ltd. provides the following information about its contributed capitals from its balance sheet for calendar 2020 and this section remained unchanged through 2022.

Capital Structure (December 31, 2020)

$6 preferred shares, no par value, cumulative, $ 500,000

6,000 shares authorized, 5,000 shares issued and outstanding

$8 preferred shares, no par value, non-cumulative, $ 600,000

10,000 shares authorized, 6,000 shares issued and outstanding

Common shares, 510,000 shares issued and outstanding $ 1,000,000

At the beginning of 2020, there were one-year dividends in-arrears. Titian reported $80,000 net income and declared no dividends in 2020.

In 2021, Titian reported $150,000 net income and declared $120,000 total dividends.

In 2020, Titian reported $180,000 net income and declared $120,000 total dividends.

Instructions

Determine the earnings available for the common shareholder for each of the three years from 2020 to 2022.