For the Year Ended December 31, 2020, Jovial Productions Inc

question 18

Essay

For the year ended December 31, 2020, Jovial Productions Inc. earned $13,000,000. Outstanding preferred shares included $1,500,000 in 9% cumulative preferred shares issued on January 1, 2017 and 32,000 $160 non-cumulative preferred shares issued on January 1, 2019 that are each entitled to dividends of $7 per annum. Dividends were neither declared nor paid on either class of the preferred shares in 2018 or 2019. On December 15, 2020, the company declared $150,000 dividends on the 4% cumulative preferred shares and $150,000 in dividends on the non-cumulative preferred shares, both payable on January 15, 2021.
Required:
Determine the net income available to ordinary shareholders for the year ended December 31, 2020.

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Definitions:

Genetic Variation

The diversity in gene frequencies within a population, which contributes to the population's ability to adapt to varying environments.

Observer

A person who watches or notices something without directly participating.

Different Speeds

Refers to varying rates of movement or progress.

Opponent-process Theory

A psychological and neurological model that accounts for a wide range of behaviors, including color vision and emotions, by assuming that stimuli trigger opposing processes in the brain.