Reference no: EM132202925
Question - Gray Corporation has the following capital structure since its incorporation on January 1, 2015:
10% Preference shares, P100 par, 1,000 shares issued P100,000
Ordinary shares, P50par, 8,000 shares issued 400,000
Although profitable, Gray Corporation did not declare dividends in 2015 and 2016. In 2018, Its board of directors declared a cash dividend of P120,000
Required:
A. Allocate the P120,000 cash dividend between preference shares and ordinary shares assuming preference shares are:
1. Non-cumulative and non-participating
2. Cumulative but non participating
3. Non-cumulative but fully participating
4. Cumulative and fully participating
B. Compute the dividend per preference share and the dividend per ordinary share under each of the assumption mentioned above.
|
Compute the depreciation cost per unit
: Whippet Bus Lines uses the units-of-activity method in depreciating its buses. Compute the depreciation cost per unit
|
|
What is marco gain or loss on the sale of his partnership
: The equipment was purchased for $240,000, and partnership has taken $60,000 of depreciation. What is Marco's gain or loss on sale of his partnership interest
|
|
What is cloud peak basis in the contributed property
: Lance contributed investment property worth $617,500, purchased Three years ago for $427,500 cash, What is Cloud Peak's basis in the contributed property
|
|
What is joseph tax basis in his partnership interes
: Joseph contributed $36,000 in cash and equipment with a tax basis of $12,100, What is Joseph's tax basis in his partnership interest
|
|
Compute the dividend per preference share
: Ordinary shares, P50par, 8,000 shares issued 400,000. Compute the dividend per preference share and the dividend per ordinary share
|
|
Prepare journal entries on the date of declaration
: Silver corporation has 20,000 ordinary shares issued. Prepare journal entries on the date of declaration and on the date of payment
|
|
Determine dollar sales to attain the company target profit
: The contribution margin ratio of Candle Corporation's only product is 67%. Determine the dollar sales to attain the company's target profit
|
|
Statement important in financial decision making
: Why is the balance sheet and income statement important in financial decision making?
|
|
Required rate of return on equity
: Explain why and how a change in interest rates on other financial assets will affect the required rate of return on equity?
|