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Question: The Corporation had the following classes of shares outstanding as of December 31, 20x5:
• Ordinary shares, P 20 par value, 20,000 shares outstanding
• Preference shares, 8 percent, P 100 par value, cumulative , 2000 shares outstanding
No dividends were paid on preference shares for the year 20x3 and 20x4. On December 31, 20x5, a total of P200,000 cash dividend was declared.
Required: Compute the amount of dividends payable for ordinary shares.
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