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 and paid $140,000 of the dividends in arrears on the 9% cumulative preferred shares.
Required:
Determine the net income available to ordinary shareholders for the year ended December 31, 2020.

Question

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The Answer of 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 and paid $140,000 of the dividends in arrears on the 9% cumulative preferred shares.
Required:
Determine the net income available to ordinary shareholders for the year ended December 31, 2020.

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