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Question - Mack Company reported the following outstanding share capital on December 31, 2020:
- 30,000 preference shares, 5% cumulative, par value P10, fully participating as to dividends. No dividends were in arrears.
- 200,000 ordinary shares, par value P1.
On December 31, 2019, the entity declared dividends of P100,000. What was the amount of dividends payable to ordinary share holders?
a. 10,000
b. 47,500
c. 40,000
d. 34,000
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