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The shareholders' equity section of the balance sheet of YK Corporation (with certain details omitted) appears below: Shareholders' equity: 8 % preference share, $100 par,
The shareholders' equity section of the balance sheet of YK Corporation (with certain details omitted) appears below: Shareholders' equity: 8 % preference share, $100 par, 100,000 shares authorized ?? shares issued $1,900,000 Ordinary Share, $5 par, 200,000 shares authorized, ?? shares issued 1,000,000 Share premium: Preference share Ordinary share 106,000 1,970,000 Issued and fully paid capital: Retained earnings $4,976,000 1,170,000 Total shareholders' equity $6,146,000 Answer the following questions based on the shareholders' equity section given above. Show your calculation clearly. (a) What is the total amount of legal capital (Total par value amount)? (3 marks) (b) What is the total amount of dividends paid annually to the preference shareholders? (3 mark) (c) What is the average issue price of a share of ordinary share? (5 marks) (d) The balance in retained earnings at the beginning of the current year was $1,350,000, and there were no dividends in arrears. Profit for the current year was $800,000. What is the amount of the dividends declared on each share of ordinary share during the current year
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