Accu Tech Renovations Corp

question 58

Essay

Accu Tech Renovations Corp. (ATRC)was incorporated on January 1, 2021. 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, 2021 was $1,800,000. ATRC declares and pays total of $238,000 in dividends. The series A preferred shares arc cumulative and the series B preferred shares are non-cumulative. Series A must be fully paid their current entitlement before any monies are paid to the Series B shareholders.
Required:
Compute basic EPS.

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Definitions:

Regulatory Organization

An entity established by a government to regulate specific activities, industries, or professions.

Public Market

A transparent and regulated marketplace where securities, commodities, and other financial instruments are traded.

Journal Entry

A record in accounting that represents a transaction where debit and credit balance totals are equal.

Cash/Short-Term Securities

Liquid assets that include currency on hand and demand deposits, as well as investments with maturities of three months or less at the time of acquisition.