For the year ended December 31, 2022, Harvest Productions Inc. earned $4,000,000. Outstanding preferred shares included $400,000 in 3% cumulative preferred shares issued on January 1, 2021 and $500,000 in 2% non-cumulative preferred shares issued on January 1, 2022. Dividends on the cumulative preferred shares were not declared in 2021. On December 15, 2022, Harvest declared and paid $24,000 in dividends on the 3% cumulative shares including the arrears. Harvest also declared and paid the $10,000 dividends on the non-cumulative shares.
Required:
Determine the net income available to ordinary shareholders for the year ended December 31, 2022.

Question

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The Answer of For the year ended December 31, 2022, Harvest Productions Inc. earned $4,000,000. Outstanding preferred shares included $400,000 in 3% cumulative preferred shares issued on January 1, 2021 and $500,000 in 2% non-cumulative preferred shares issued on January 1, 2022. Dividends on the cumulative preferred shares were not declared in 2021. On December 15, 2022, Harvest declared and paid $24,000 in dividends on the 3% cumulative shares including the arrears. Harvest also declared and paid the $10,000 dividends on the non-cumulative shares.
Required:
Determine the net income available to ordinary shareholders for the year ended December 31, 2022.

For the Year Ended December 31, 2022, Harvest Productions Inc