ABC Company provided the following information relating to shareholders' equity on December 31, 2020: Preference share capital, P100 par, 80,000 shares issued, 12% cumulative and fully participating, P8,000,000Ordinary share capital, P50 par, 200,000 shares issued, P10,000,000 Share premium, P5,000,000Retained earnings, P7,000,000Dividends on preference shares are in arrears for two years including the current year. On December 31, 2020, ABC Company intends to pay cash dividend of P10 per share to its ordinary shareholders.What is the total amount of dividends to be declared for the preference and ordinary shareholders? (round answer to a whole number)

The declaration and payment of dividends are subject to certain legal and regulatory requirements,…

Answered: ABC Company provided the following…

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 67E: Cash Dividends on Common and Preferred Stock Lemon Inc. has the following information regarding its...

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ABC Company provided the following information relating to shareholders' equity on December 31, 2020:

Preference share capital, P100 par, 80,000 shares issued, 12% cumulative and fully participating, P8,000,000
Ordinary share capital, P50 par, 200,000 shares issued, P10,000,000
Share premium, P5,000,000
Retained earnings, P7,000,000
Dividends on preference shares are in arrears for two years including the current year. On December 31, 2020, ABC Company intends to pay cash dividend of P10 per share to its ordinary shareholders.

What is the total amount of dividends to be declared for the preference and ordinary shareholders? (round answer to a whole number)

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