Compute the book value per preference shares

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Question - Book value per share - BB, Inc. shareholders' equity section of the statement of financial position is as follows:

5% Cumulative Preference Shares, P1,000 par, 5,000 shares authorized, 1,000 shares issued and outstanding P1,000,000

Ordinary Shares, P100par, 20,000 shares authorized, 5,500 shares issued and outstanding P550,000

Share premium - Preference P400,000

Share premium - Ordinary P700,000

Retained earnings P900,000

The preference shares has a liquidation value of P1,200 and dividends are in arrears for three years. No declaration of dividends made for the current period.

Required -

1. Compute the book value per Preference Shares.

2. Compute the book value per Ordinary Shares.

Reference no: EM132795674

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