SOLVED

39) Tropical Island Inc. (TIl) was incorporated on January 1, 2018. At that time it issued 300,000 ordinary shares; 10,000, $10, 8% preferred shares “A”; and 100,000, $10, 9% preferred shares “B.” Net income for the year ended December 31, 2018 was $1,600,000. TIl declares and pays a total of $68,000 in dividends. Both the preferred shares series A and B are non-cumulative in nature. Series A must be fully paid their current entitlement before any monies are paid to the Series B shareholders. Required: Compute basic BPS. 40) Summer Surprise Ltd. (SSL) was incorporated on January 1, 2018. At that time, it issued 210,000 ordinary shares; 95,000, $65, 2% preferred shares “A”; and 85,000, $65, 4% preferred shares “B.” Net income for the year ended December 31, 2018 was $500,000. SSL neither declares nor pays dividends during the year. Both the preferred shares series A and B are cumulative in nature. Series A must be fully paid their current entitlement as well as any arrears before any monies are paid to the Series B shareholders. Required: Compute basic BPS. 41) Summer Surprise Ltd. (SSL) was incorporated on January 1, 2018. At that time, it issued 210,000 ordinary shares; 95,000, $65, 2% preferred shares “A”; and 85,000, $65, 4% preferred shares “B.” Net income for the year ended December 31, 2018 was $500,000. SSL neither declares nor pays dividends during the year. The series A preferred shares are cumulative and the series B preferred shares are non-cumulative. Series A must be fully paid their current entitlement before any monies are paid to the Series B shareholders. Required: Compute basic BPS.