For the Year Ended December 31, 2021, Jovial Productions Inc

question 85

Essay

For the year ended December 31, 2021, Jovial Productions Inc. earned $13,000,000. Outstanding preferred shares included $1,500,000 in 9% cumulative preferred shares issued on January 1, 2018 and 32,000 $160 non-cumulative preferred shares issued on January 1, 2020 that are each entitled to dividends of $7 per annum. Dividends were neither declared nor paid on either class of the preferred shares in 2019 or 2020. On December 15, 2021, the company declared and paid the $270,000 dividends in arrears on the 9% cumulative preferred shares. The company also declared and paid $224,000 dividends on the non-cumulative preferred shares.
Required:
Determine the net income available to ordinary shareholders for the year ended December 31, 2021.