ABC began operations in January 2019 and reported the following results for each of its three...

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ABC began operations in January 2019 and reported the following results for each of its three years of operations. 2019-P520,000 loss; 2020-P80,000 loss; 2021- P1,600,000 profit At December 31, 2020, ABC Company's capital accounts were as follows: 8% Cumulative Preference Share Capital, P100 par, 50,000 shares authorized, issued and outstanding- P5,000,000; Ordinary Share Capital, P10 par, 1,000,000 shares authorized, 750,000 shares issued and outstanding- P7,500,000 • ABC Company has never paid a cash or bonus issue and there has been no change in its capital accounts since it began operations in 2019. The corporation law permits dividends only from retained earnings. What is the book value of the ordinary share at December 31, 2020 assuming that the preference share has a liquidating value of P106 per share?* ABC began operations in January 2019 and reported the following results for each of its three years of operations. 2019-P520,000 loss; 2020-P80,000 loss; 2021- P1,600,000 profit At December 31, 2020, ABC Company's capital accounts were as follows: 8% Cumulative Preference Share Capital, P100 par, 50,000 shares authorized, issued and outstanding- P5,000,000; Ordinary Share Capital, P10 par, 1,000,000 shares authorized, 750,000 shares issued and outstanding- P7,500,000 • ABC Company has never paid a cash or bonus issue and there has been no change in its capital accounts since it began operations in 2019. The corporation law permits dividends only from retained earnings. What is the book value of the ordinary share at December 31, 2020 assuming that the preference share has a liquidating value of P106 per share?*

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Retained earnings can be calculated by subtracting the cumulative losses from the cumulative profits ... View the full answer