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. On December 15, 2021, Harvest declared $10,000 in dividends on the non-cumulative preferred shares, payable on January 15, 2022. Dividends on the cumulative preferred shares are neither declared nor paid.
Required:
Determine the net income available to ordinary shareholders for the year ended December 31, 2021.

Question

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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. On December 15, 2021, Harvest declared $10,000 in dividends on the non-cumulative preferred shares, payable on January 15, 2022. Dividends on the cumulative preferred shares are neither declared nor paid.
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