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Problem 1: Written, Inc. has outstanding 500,000 shares of P2 par ordinary shares and 100,000 shares of no par 8% preference shares with a stated value of P5. The preference shares is cumulative and nonparticipating. Dividends have been paid in every year except the past two years and the current year. Assuming that P105,000 will be distributed as a dividend in the current year, how much will the preferred stockholders receive?
a. P35,000. b. P40,000. c. P80,000d. P105,000
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The company estimated a 10-year useful life for the patent and uses the straight-line amortization method for all intangible assets. In 2014, Vega spent $40,000 in legal fees for an unsuccessful defense of the patent. The amount charged to income ..
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