Question
the shareholders equity section reported the following prior to dividend declaration: 6% preference shares, P100 par, 25,000 authorized and 10,000 issued and outstandingP1,000,000 Share premium
the shareholders equity section reported the following prior to dividend declaration:
6% preference shares, P100 par, 25,000 authorized and 10,000 issued and outstandingP1,000,000
Share premium on preference share100,000
Ordinary shares, P50 par, 100,000 authorized and 80,000 issued4,000,000
Share premium on ordinary share500,000
Accumulate profits6,000,000
Appropriation reserve for plant expansion3,000,000
80% of accumulated profits were declared as cash dividend. There were 2 years dividend in arrears plus current year.
Compute the dividend payable to preference and ordinary shareholders, assuming the following conditions:
Non cumulative and participating.
Non cumulative and non participating.
cumulative and participating.
cumulative and non participating.
Non cumulative and participating up to 10%
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