Accu Tech Renovations Corp

question 97

Essay

Accu Tech Renovations Corp.(ATRC)was incorporated on January I,2014.At that time it issued 100,000 ordinary shares; 80,000,$20,3% preferred shares "A"; and 40,000,$20,6% preferred shares "B." Net income for the year ended December 31,2014 was $1,800,000.ATRC declares and pays total of $238,000 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.
Requirement:
Compute basic BPS.

---

Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer.

Hourly Wage Rate

The amount of money paid to an employee for every hour worked, typically applied to part-time or contract workers.

Gross Pay

The total amount earned by an employee before any deductions or taxes are taken out.

Medicare Tax

A federal tax that helps fund the Medicare program, which provides health insurance for individuals who are 65 years old and older or who meet other specific criteria.