Problem 1 - Cumulative preference share with liquidation premium Fletcher Co.'s current statement of financial position reports the following shareholders' equity: 5% Preference shares, P100 P500,000 par Ordinary shares, P10 par 500,000 Share premium 300,000 Retained earnings 700,000 The preference shares are cumulative. Dividends in arrears, including the current year, on the preference shares amount to P50,000. If Fletcher were to be liquidated, the preference shareholders would receive par value plus a premium of P10 per share. Compute the book value per preference an ordinary share of Fletcher Co. Problem 2 - Cumulative and fully participating preference shares The shareholders' equity of Malfoy Corp. on Dec. 31, 2020 shows the following account balances: 10% Preference share, P100 P500,000 par 12% Preference share, P100 600,000 par Ordinary share, P40 par 400,000 Share premium 320,000 Retained earnings 480,000 The 10% preference share is cumulative and fully participating, while the 12% preference share is non- cumulative and fully participating. The last payment of dividends was on Dec. 31, 2018. Determine the book value per share of each class of share. Problem 3 - With treasury shares The shareholders' equity of Granger Inc. shows the following balances on Dec. 31, 2020: 10% Preference share, P100 par P2,000,000 Ordinary share, P100 par 3,000,000 Subscribed ordinary shares 1,000,000 Subscription receivable (600,000) Treasury shares (5,000 ordinary shares at (400,000) cost Share premium 660,000 Retained earnings 1,580,000 The preference shares are cumulative and nonparticipating, each share having a liquidation value of P110. The dividends are in arrears since 2018. Compute for the book value per preference and ordinary share