Tomlinson Corporation has three classes of shares Series A Series
Tomlinson Corporation has three classes of shares: Series A, Series B, and Class A. How should Tomlinson classify and present the different classes if the characteristics of each class are as follows?
Series A shares The shares are mandatorily redeemable and carry a dividend rate of 4%.
Series B shares The shares are cumulative and carry a dividend rate of $2 per share. They are subordinated to the Series A shares for dividend distribution.
Class A shares The shares are subordinated to both Series A and Series B shares for dividend distribution and participate in the earnings and losses of the company above a non-cumulative dividend of $0.50 per share. The shares have a voting right of one vote per share.
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