For the year ended December 31, 2021, Harvest Productions Inc. earned $4,000,000. Outstanding preferred shares included $400,000 in 3% cumulative preferred shares issued on January 1, 2020 and $500,000 in 2% non-cumulative preferred shares issued on January 1, 2021. Dividends on the cumulative preferred shares were not declared in 2020.
Harvest did not declare any dividends during 2021.
Required:
Determine the net income available to ordinary shareholders for the year ended December 31, 2021.

Question

Quizplus · Accepted Answer

The Answer of For the year ended December 31, 2021, Harvest Productions Inc. earned $4,000,000. Outstanding preferred shares included $400,000 in 3% cumulative preferred shares issued on January 1, 2020 and $500,000 in 2% non-cumulative preferred shares issued on January 1, 2021. Dividends on the cumulative preferred shares were not declared in 2020.
Harvest did not declare any dividends during 2021.
Required:
Determine the net income available to ordinary shareholders for the year ended December 31, 2021.

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