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RST Corporation's EBIT for 2016 amounted to P200.000. The company'scapital structure consists of 100, 15%, P5,000par value bonds; 1,00012% preferred shares, P100 par value; and

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RST Corporation's EBIT for 2016 amounted to P200.000. The company'scapital structure consists of 100, 15%, P5,000par value bonds; 1,00012% preferred shares, P100 par value; and 2,000 P50 ordinary shares, P50 par value. Retained Earnings account has a balance of P 125,000 as of December 31, 2016. Forty percent of earnings after interest and taxes (corporate tax rate - 32%) will be retained in the business. compute for the following: a) Interest on bonds payment - P b) Corporate income taxes - P c) Dividends on preferred shares - P d) Dividends on ordinary shares - P e) Balance of Retained Earnings Account as of December 31, 2016 - P

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