Reference no: EM132886287

Question - Sugar Corporation current year statement of financial position reports the following shareholders' equity accounts.

8% Preference share capital, P25 par value, 10,000 shares issued and outstanding P250,000

Ordinary share capital, P20 par value, 17,500 shares issued and outstanding 350,000

Additional paid in capital 125,000

Retained earnings 290,000

Dividends are in arrears for 2 years including the current year. If Sugar Corporation were to be liquidated, the preference shareholders would receive par value plus a premium of P25,000.

Required -

1. How much is the book value per preference share and ordinary share if preference is cumulative and non-participating?

2. How much is the book value per preference share and ordinary share if preference is non-cumulative and non- participating?

3. How much is the book value per preference share and ordinary share if preference is cumulative and participating up to 10%?