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Watusi Inc. began operations in January 2021 and reported the following results for each of its 3 years of operations. 2021 2022 2023 P260,000 net
Watusi Inc. began operations in January 2021 and reported the following results for each of its 3 years of operations. 2021 2022 2023 P260,000 net loss P40,000 net loss P700,000 net income At December 31, 2023, Watusi Inc. share capital accounts were as follows. Share Capital-Preference, 6% cumulative, par value P100; authorized, issued, and outstanding 5,000 shares Share Capital-Ordinary, par value P1.00; authorized 1,000,000 shares; issued and outstanding 750,000 shares P260,000 750,000 Watusi Inc. has never paid a cash or share dividend. There has been no change in the share capital accounts since Watusi began operations. The country law permits dividends only from retained earnings. Instructions a. Compute the book value of the ordinary shares at December 31, 2023. b. Compute the book value of the ordinary shares at December 31, 2023, assuming that the preference shares have a liquidating value of P106 per share
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