PRACTICE QUIZ - BOOK VALUE AND PREFERENCE

DIVIDENDS

Dix Company reported the following shareholders' equity on December

31,2019:

8% cumulative preference share capital, P50 par; liquidating value P55 per

share; authorized, issued and outstanding 20,000 shares

1,000,000

Ordinary share capital, P25 par; 200,000 shares authorized; 100,000 shares

issued and outstanding 2,500,000

Retained earnings 400,000

Dividends on preference shares have not been declared for 2018 and 2019.

On December 31, 2019, what is the book value per ordinary share?
Nova Company provided the following shareholders' equity on December

31,2019:

Cumulative preference share capital, P100 par, 8%

500,000

Ordinary share capital, P100 par

1,100,000

Share premium 200,000

Retained earnings

260,000

Treasury ordinary shares-1,000 at cost

(150,000)

Dividends on preference shares are in arrears for 2018 and 2019.

What is the book value per ordinary share on December 31,2019?