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Question - The Red Violet Company paid a total of P 610,000 dividends in 2020 to its 250,000 shares of P 10 par ordinary share and 20,000 shares of 9% P 100 par preference share.
Dividends of P 50,000 were in arrears on January 1, 2020.
REQUIRED - Compute the total amount of dividends on both preference share capital and ordinary share capital, assuming:
a) Preference is cumulative and participating up to 14%.
b) Preference is non-cumulative and participating up to 12%.
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